Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Oct. 31, 2016 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | Targa Resources Corp. | |
Entity Central Index Key | 1,389,170 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 180,827,459 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2016 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 | ||
Current assets: | ||||
Cash and cash equivalents | $ 141.1 | $ 140.2 | ||
Trade receivables, net of allowances of $0.1 million | 547.4 | 515.8 | ||
Inventories | 150.3 | 141 | ||
Assets from risk management activities | 34.8 | 92.2 | ||
Income tax receivable | 78.5 | 13.5 | ||
Other current assets | 24.6 | 17.3 | ||
Total current assets | 976.7 | 920 | ||
Property, plant and equipment | 12,354.5 | 11,935.1 | ||
Accumulated depreciation | (2,674.3) | (2,232.4) | ||
Property, plant and equipment, net | 9,680.2 | 9,702.7 | ||
Intangible assets, net | 1,693 | 1,810.1 | ||
Goodwill, net | 393 | 417 | ||
Long-term assets from risk management activities | 12.4 | 34.9 | ||
Investments in unconsolidated affiliates | 246.9 | 258.9 | ||
Other long-term assets | 53.4 | 67.4 | ||
Total assets | 13,055.6 | [1] | 13,211 | |
Current liabilities: | ||||
Accounts payable and accrued liabilities | 710.8 | 657.1 | ||
Liabilities from risk management activities | 13 | 5.2 | ||
Accounts receivable securitization facility | [2] | 225 | 219.3 | |
Total current liabilities | 948.8 | 881.6 | ||
Long-term debt | 4,725.9 | 5,718.8 | ||
Long-term liabilities from risk management activities | 17.6 | 2.4 | ||
Deferred income taxes, net | 1,141.7 | 177.8 | ||
Other long-term liabilities | 159.1 | 180.2 | ||
Contingencies (see Note 17) | 0 | 0 | ||
Targa Resources Corp. stockholders' equity: | ||||
Common stock value | 0.2 | 0.1 | ||
Preferred stock ($0.001 par value, after designation of Series A Preferred Stock; 98,800,000 shares authorized, no shares issued and outstanding) | 0 | 0 | ||
Additional paid-in capital | 5,377.7 | 1,457.4 | ||
Retained earnings (deficit) | (36.6) | 26.9 | ||
Accumulated other comprehensive income (loss) | (2.7) | 5.7 | ||
Treasury stock, at cost (507,015 shares as of September 30, 2016 and 426,307 as of December 31, 2015) | (31.8) | (28.7) | ||
Total Targa Resources Corp. stockholders' equity | 5,306.8 | 1,461.4 | ||
Noncontrolling interests in subsidiaries | 570.1 | 4,788.8 | ||
Total owners' equity | 5,876.9 | 6,250.2 | ||
Total liabilities, Series A Preferred Stock and owners' equity | 13,055.6 | 13,211 | ||
Series A Preferred Stock [Member] | ||||
Current liabilities: | ||||
Series A Preferred 9.5% Stock, $1,000 per share liquidation preference, (1,200,000 shares authorized, issued and outstanding 965,100 shares) | $ 185.6 | $ 0 | ||
[1] | Corporate assets at the segment level primarily include tax-related assets, cash and prepaids. | |||
[2] | While we consolidate the debt of the Partnership in our financial statements, we do not have the obligation to make interest payments or debt payments with respect to the debt of the Partnership. |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Current assets: | ||
Trade receivables, allowances | $ 0.1 | $ 0.1 |
Targa Resources Corp. stockholders' equity: | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 300,000,000 | 300,000,000 |
Common stock, shares issued (in shares) | 173,700,369 | 56,446,573 |
Common stock, shares outstanding (in shares) | 173,193,354 | 56,020,266 |
Preferred stock, par value (in dollar per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 98,800,000 | 0 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Treasury stock, shares (in shares) | 507,015 | 426,307 |
Series A Preferred Stock [Member] | ||
LIABILITIES, SERIES A PREFERRED STOCK AND OWNERS' EQUITY | ||
Preferred Series A Liquidation Stock Percentage | 9.50% | |
Preferred Stock, Liquidation Preference Per Share | $ 1,000 | |
Preferred Stock, Shares Authorized | 1,200,000 | |
Preferred Stock, Shares Issued | 1,200,000 | |
Preferred Stock, Shares Outstanding | 965,100 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Revenues | ||||
Sales of commodities | $ 1,398.7 | $ 1,321.3 | $ 3,882.9 | $ 4,119.6 |
Fees from midstream services | 253.6 | 310.8 | 795.5 | 891.6 |
Total revenues | 1,652.3 | 1,632.1 | 4,678.4 | 5,011.2 |
Costs and expenses: | ||||
Product purchases | 1,222.7 | 1,163.3 | 3,378.9 | 3,650 |
Operating expenses | 143 | 142.7 | 414 | 409.6 |
Depreciation and amortization expenses | 184 | 165.8 | 563.6 | 448.3 |
General and administrative expenses | 46.1 | 44.9 | 138.3 | 136.5 |
Goodwill impairment | 0 | 0 | 24 | 0 |
Other operating (income) expense | 4.9 | 0.1 | 6.1 | 0.6 |
Income from operations | 51.6 | 115.3 | 153.5 | 366.2 |
Other income (expense): | ||||
Interest expense, net | (62.7) | (67.8) | (187) | (189.5) |
Equity earnings (loss) | (2.2) | (1.6) | (11.4) | (1.1) |
Gain (loss) from financing activities | (0.5) | 21.4 | (13.4) | |
Other | 1.4 | (0.6) | 1.2 | (27.5) |
Income (loss) before income taxes | (11.9) | 44.8 | (22.3) | 134.7 |
Income tax (expense) benefit | 8.7 | (24) | 3.9 | (54.1) |
Net income (loss) | (3.2) | 20.8 | (18.4) | 80.6 |
Less: Net income attributable to noncontrolling interests | 7.5 | 8.1 | 18.2 | 49.2 |
Net income (loss) attributable to Targa Resources Corp. | (10.7) | 12.7 | (36.6) | 31.4 |
Dividends on Series A preferred stock | 22.9 | 49.7 | ||
Deemed dividends on Series A preferred stock | 5.8 | 12.3 | ||
Net income (loss) attributable to common shareholders | $ (39.4) | $ 12.7 | $ (98.6) | $ 31.4 |
Net income (loss) per common share - basic | $ (0.23) | $ 0.23 | $ (0.68) | $ 0.60 |
Net income (loss) per common share - diluted | $ (0.23) | $ 0.23 | $ (0.68) | $ 0.60 |
Weighted average shares outstanding - basic | 168 | 56 | 145.5 | 52.6 |
Weighted average shares outstanding - diluted | 168 | 56.1 | 145.5 | 52.7 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Comprehensive Income Net Of Tax [Abstract] | ||||
Net income (loss) attributable to Targa Resources Corp. | $ (10.7) | $ 12.7 | $ (36.6) | $ 31.4 |
Commodity hedging contracts: | ||||
Change in fair value, pre-tax | 12.9 | 5.5 | (64.1) | 7.5 |
Change in fair value, related income tax | (4.9) | (2) | 24.4 | (2.9) |
Change in fair value, after tax | 8 | 3.5 | (39.7) | 4.6 |
Settlements reclassified to revenues, pre-tax | (8.1) | (2.7) | (39.5) | (6.8) |
Settlements reclassified to revenues, related income tax | 3.1 | 1 | 15 | 2.6 |
Settlements reclassified to revenues, after tax | (5) | (1.7) | (24.5) | (4.2) |
Other comprehensive income (loss) attributable to Targa Resources Corp., pre-tax | 4.8 | 2.8 | (103.6) | 0.7 |
Other comprehensive income (loss) attributable to Targa Resources Corp., related income tax | (1.8) | (1) | 39.4 | (0.3) |
Other comprehensive income (loss) attributable to Targa Resources Corp., after tax | 3 | 1.8 | (64.2) | 0.4 |
Comprehensive income attributable to Targa Resources Corp. | (7.7) | 14.5 | (100.8) | 31.8 |
Net income (loss) attributable to noncontrolling interests | 7.5 | 8.1 | 18.2 | 49.2 |
Commodity hedging contracts: | ||||
Change in fair value, pre-tax | 0 | 45.2 | 23.6 | 70.1 |
Change in fair value, related income tax | 0 | 0 | 0 | |
Change in fair value, after tax | 0 | 45.2 | 23.6 | 70.1 |
Settlements reclassified to revenues, pre-tax | 0 | (21.8) | (11.1) | (52.5) |
Settlements reclassified to revenues, related income tax | 0 | 0 | 0 | 0 |
Settlements reclassified to revenues, after tax | 0 | (21.8) | (11.1) | (52.5) |
Other comprehensive income (loss) attributable to noncontrolling interests, pre-tax | 0 | 23.4 | 12.5 | 17.6 |
Other comprehensive income (loss) attributable to noncontrolling interests, related income tax | 0 | 0 | 0 | 0 |
Other comprehensive income (loss) attributable to noncontrolling interests, after tax | 0 | 23.4 | 12.5 | 17.6 |
Comprehensive income (loss) attributable to noncontrolling interests | 7.5 | 31.5 | 30.7 | 66.8 |
Total | ||||
Net income (loss) | (3.2) | 20.8 | (18.4) | 80.6 |
Commodity hedging contracts: | ||||
Change in fair value, pre-tax | 12.9 | 50.7 | (40.5) | 77.6 |
Change in fair value, related income tax | (4.9) | (2) | 24.4 | (2.9) |
Change in fair value, after tax | 8 | 48.7 | (16.1) | 74.7 |
Settlements reclassified to revenues, pre-tax | (8.1) | (24.5) | (50.6) | (59.3) |
Settlements reclassified to revenues, related income tax | 3.1 | 1 | 15 | 2.6 |
Settlements reclassified to revenues, after tax | (5) | (23.5) | (35.6) | (56.7) |
Other comprehensive income (loss) attributable to Targa Resources Corp., pre-tax | 4.8 | 26.2 | (91.1) | 18.3 |
Other comprehensive income (loss) attributable to Targa Resources Corp., related income tax | (1.8) | (1) | 39.4 | (0.3) |
Other comprehensive income (loss) attributable to Targa Resources Corp., after tax | 3 | 25.2 | (51.7) | 18 |
Total comprehensive income (loss) | $ (0.2) | $ 46 | $ (70.1) | $ 98.6 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN OWNERS' EQUITY AND SERIES A PREFERRED STOCK (Unaudited) - USD ($) $ in Millions | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings (Accumulated Deficit) [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Treasury Shares [Member] | Noncontrolling Interests [Member] | Series A Preferred Stock [Member] | |
Balance at Dec. 31, 2014 | $ 2,539.5 | $ 0 | $ 164.9 | $ 25.5 | $ 4.8 | $ (25.4) | $ 2,369.7 | ||
Balance (in shares) at Dec. 31, 2014 | 42,143,000 | 389,000 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Compensation on equity grants | 19 | $ 0 | 6.2 | 0 | 0 | $ 0 | 12.8 | ||
Distribution equivalent rights | (2.5) | $ 0 | (0.6) | 0 | 0 | 0 | (1.9) | ||
Shares issued under compensation program (in shares) | 48,000 | ||||||||
Shares and units tendered for tax withholding obligations | (8.3) | $ 0 | 0 | 0 | 0 | $ (3.1) | (5.2) | ||
Shares and units tendered for tax withholding obligations (in shares) | (36,000) | 36,000 | |||||||
Sale of Partnership limited partner interests | 315.4 | $ 0 | 0 | 0 | 0 | $ 0 | 315.4 | ||
Issuance of common stock | 335.5 | $ 0 | 335.5 | 0 | 0 | 0 | 0 | ||
Issuance of common stock (in shares) | 3,738,000 | ||||||||
Impact of Partnership equity transactions | 0 | $ 0 | 56.5 | 0 | 0 | 0 | (56.5) | ||
Dividends | (128) | 0 | 0 | (128) | 0 | 0 | 0 | ||
Common stock dividends in excess of retained earnings | 0 | 0 | (83.7) | 83.7 | 0 | 0 | 0 | ||
Distributions to noncontrolling interests | (368.5) | 0 | 0 | 0 | 0 | 0 | (368.5) | ||
Contributions from noncontrolling interests | 16.4 | 0 | 0 | 0 | 0 | 0 | 16.4 | ||
Noncontrolling interests in acquired subsidiaries | 113.4 | $ 0 | 0 | 0 | 0 | 0 | 113.4 | ||
Common stock issued in ATLS merger (in shares) | 10,126,000 | ||||||||
Common stock issued in ATLS merger | 1,013.7 | $ 0.1 | 1,013.6 | 0 | 0 | 0 | 0 | ||
Partnership units issued in APL merger | 2,435.7 | 0 | 0 | 0 | 0 | 0 | 2,435.7 | ||
Other comprehensive income (loss) | 18 | 0 | 0 | 0 | 0.4 | 0 | 17.6 | ||
Net income (loss) | 80.6 | 0 | 0 | 31.4 | 0 | 0 | 49.2 | ||
Balance at Sep. 30, 2015 | 6,379.9 | $ 0.1 | 1,492.4 | 12.6 | 5.2 | $ (28.5) | 4,898.1 | ||
Balance (in shares) at Sep. 30, 2015 | 56,019,000 | 425,000 | |||||||
Balance at Dec. 31, 2014 | 2,539.5 | $ 0 | 164.9 | 25.5 | 4.8 | $ (25.4) | 2,369.7 | ||
Balance (in shares) at Dec. 31, 2014 | 42,143,000 | 389,000 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Other comprehensive income (loss) | 25.8 | 24.9 | |||||||
Balance at Dec. 31, 2015 | 6,250.2 | $ 0.1 | 1,457.4 | 26.9 | 5.7 | $ (28.7) | 4,788.8 | ||
Balance (in shares) at Dec. 31, 2015 | 56,020,000 | 426,000 | |||||||
Series A Preferred Stock at Dec. 31, 2015 | $ 0 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Compensation on equity grants | 22.2 | $ 0 | 20 | 0 | 0 | $ 0 | 2.2 | ||
Compensation on equity grants (in shares) | 0 | 0 | |||||||
Distribution equivalent rights | (7) | $ 0 | (6.8) | 0 | 0 | $ 0 | (0.2) | ||
Shares issued under compensation program (in shares) | 331,000 | ||||||||
Shares and units tendered for tax withholding obligations | (3.2) | $ 0 | 0 | 0 | 0 | $ (3.1) | (0.1) | ||
Shares and units tendered for tax withholding obligations (in shares) | (81,000) | 81,000 | |||||||
Issuance of common stock | 398 | $ 0 | 398 | 0 | 0 | $ 0 | 0 | 0 | |
Issuance of common stock (in shares) | 9,211,000 | ||||||||
Issuance of Series A Preferred and detachable warrants | 796.8 | $ 0 | 796.8 | 0 | 0 | 0 | 0 | ||
Series A Preferred Stock | 173.3 | ||||||||
Exercise of warrants - share settled | 0 | $ 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
Exercise of warrants - share settled (in shares) | 3,185,623 | ||||||||
Series A Preferred Stock dividends | (49.7) | $ 0 | 0 | (49.7) | 0 | 0 | 0 | 0 | |
Series A Preferred Stock dividends in excess of retained earnings | 0 | 0 | (45.9) | 45.9 | 0 | 0 | 0 | ||
Series A Preferred Stock deemed dividends - accretion of beneficial conversion feature | (12.3) | 0 | (12.3) | 0 | 0 | 0 | 0 | 12.3 | |
Common stock dividends | (349) | 0 | 0 | (349) | 0 | 0 | 0 | ||
Common stock dividends in excess of retained earnings | 0 | 0 | (325.9) | 325.9 | 0 | 0 | 0 | ||
Distributions to noncontrolling interests | (164.3) | 0 | 0 | 0 | 0 | 0 | (164.3) | ||
Contributions from noncontrolling interests | 32.8 | 0 | 0 | 0 | 0 | 0 | 32.8 | ||
Noncontrolling interests in acquired subsidiaries | (967.5) | $ 0.1 | 3,096.4 | 0 | 55.7 | 0 | (4,119.7) | ||
Acquisition of TRP noncontrolling common interests (in shares) | 104,526,000 | ||||||||
Common stock issued in ATLS merger | (2,316.6) | $ 0.1 | 1,803 | (4,119.7) | [1] | ||||
Other comprehensive income (loss) | (51.7) | 0 | 0 | 0 | (64.1) | 0 | 12.4 | ||
Net income (loss) | (18.4) | 0 | 0 | (36.6) | 0 | 0 | 18.2 | ||
Balance at Sep. 30, 2016 | $ 5,876.9 | $ 0.2 | $ 5,377.7 | $ (36.6) | $ (2.7) | $ (31.8) | $ 570.1 | ||
Balance (in shares) at Sep. 30, 2016 | 173,193,000 | 507,000 | |||||||
Series A Preferred Stock at Sep. 30, 2016 | $ 185.6 | ||||||||
[1] | Reflects the February 17, 2016 book value of the publicly held interests in TRP. |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Cash flows from operating activities | ||
Net income (loss) | $ (18.4) | $ 80.6 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Amortization in interest expense | 12.1 | 11.2 |
Compensation on equity grants | 22.2 | 19 |
Depreciation and amortization expenses | 563.6 | 448.3 |
Goodwill impairment | 24 | 0 |
Accretion of asset retirement obligations | 3.5 | 4 |
Change in redemption value of mandatorily redeemable preferred interest | (18.8) | |
Deferred income tax expense (benefit) | (3.9) | 41.9 |
Equity (earnings) loss of unconsolidated affiliates | 11.4 | 1.1 |
Distributions of earnings received from unconsolidated affiliates | 1.8 | 10.1 |
Risk management activities | 11.7 | 53.2 |
(Gain) loss on sale or disposition of assets | 5.7 | (0.2) |
(Gain) loss from financing activities | (21.4) | 13.4 |
Changes in operating assets and liabilities, net of business acquisitions: | ||
Receivables and other assets | (94.1) | 121.6 |
Inventories | (27.8) | 31.2 |
Accounts payable and other liabilities | 89.1 | (139.9) |
Net cash provided by operating activities | 560.7 | 695.5 |
Cash flows from investing activities | ||
Outlays for property, plant and equipment | (425) | (625.3) |
Outlays for business acquisitions, net of cash acquired | (1,574.4) | |
Investment in unconsolidated affiliates | (4.6) | (6.6) |
Return of capital from unconsolidated affiliates | 3.4 | 1.1 |
Other, net | 4.2 | (3) |
Net cash used in investing activities | (422) | (2,208.2) |
Debt obligations: | ||
Proceeds from borrowings under credit facilities | 1,497 | 2,127 |
Repayments of credit facilities | (1,942) | (1,349) |
Proceeds from borrowings under accounts receivable securitization facility | 121.4 | 275.5 |
Repayments of accounts receivable securitization facility | (115.7) | (322.8) |
Proceeds from issuance of senior notes and term loan | 2,122.5 | |
Open market purchases of senior notes | (534.3) | |
Repayments on senior term loan | (270) | |
Redemption of APL senior notes | (1,168.8) | |
Costs incurred in connection with financing arrangements | (46.1) | (43) |
Proceeds from issuance of common stock | 401 | 335.5 |
Proceeds from issuance of preferred stock and warrants | 994.1 | |
Proceeds from sale of Partnership common and preferred units | 318.6 | |
Repurchase of shares and units under compensation plans | (3.2) | (8.3) |
Contributions from noncontrolling interests | 32.8 | 16.4 |
Distributions to noncontrolling interests | (16.8) | (8.8) |
Payments of distribution equivalent rights | (0.3) | (2.5) |
Distributions to Partnership unitholders | (147.5) | (359.7) |
Dividends paid to common and preferred shareholders | (378.2) | (128) |
Net cash provided by (used in) financing activities | (137.8) | 1,534.6 |
Net change in cash and cash equivalents | 0.9 | 21.9 |
Cash and cash equivalents, beginning of period | 140.2 | 81 |
Cash and cash equivalents, end of period | $ 141.1 | $ 102.9 |
Organization and Operations
Organization and Operations | 9 Months Ended |
Sep. 30, 2016 | |
Organization [Abstract] | |
Organization and Operations | Note 1 — Organization and Operations Our Organization Targa Resources Corp. (“TRC”) is a publicly traded Delaware corporation formed in October 2005. Our common stock is listed on the New York Stock Exchange under the symbol “TRGP.” In this Quarterly Report, unless the context requires otherwise, references to “we,” “us,” “our,” “the Company” or “Targa” are intended to mean our consolidated business and operations. Our Operations The Company is engaged in the business of: • gathering, compressing, treating, processing and selling natural gas; • storing, fractionating, treating, transporting and selling NGLs and NGL products, including services to LPG exporters; • gathering, storing and terminaling crude oil; and • storing, terminaling and selling refined petroleum products. Areas of gathering and processing operations include the Permian Basin in West Texas and Southeast New Mexico; the Eagle Ford Shale in South Texas; the Barnett Shale in North Texas; the Anadarko, Ardmore, and Arkoma Basins in Oklahoma and South Central Kansas; the Williston Basin in North Dakota and in the onshore and near offshore regions of the Louisiana Gulf Coast and the Gulf of Mexico. The Company’s logistics and marketing assets are predominately located in Mont Belvieu and Galena Park, TX, Lake Charles, LA, and Tacoma, WA. See Note 20 – Segment Information for certain financial information for our business segments. |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2016 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation | Note 2 — Basis of Presentation We have prepared these unaudited consolidated financial statements in accordance with GAAP for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. While we derived the year-end balance sheet data from audited financial statements, this interim report does not include all disclosures required by GAAP for annual periods. These unaudited consolidated financial statements and other information included in this Quarterly Report should be read in conjunction with our consolidated financial statements and notes thereto included in our Annual Report and our Current Report on Form 8-K filed with the SEC on May 23, 2016. The unaudited consolidated financial statements for the three and nine months ended September 30, 2016 and 2015 include all adjustments that we believe are necessary for a fair statement of the results for interim periods. All significant intercompany balances and transactions have been eliminated in consolidation. Certain amounts in prior periods may have been reclassified to conform to the current year presentation. Our financial results for the three and nine months ended September 30, 2016 are not necessarily indicative of the results that may be expected for the full year. One of our indirect subsidiaries is the sole general partner of Targa Resources Partners LP (“the Partnership” or “TRP”). Prior to February 17, 2016, our interests in the Partnership consisted of the following: • a 2% general partner interest, which we hold through our 100% ownership interest in the general partner of the Partnership; • all Incentive Distribution Rights (“IDRs”); • 16,309,594 common units representing limited partner interests in the Partnership (“common units”), representing an 8.8% limited partnership interest; and • a Special GP Interest representing retained tax benefits related to the contribution to the Partnership from us of the APL general partner interest acquired in the ATLS merger (as defined in Note 4 – Business Acquisitions). On February 17, 2016, we completed the transactions contemplated by the Agreement and Plan of Merger (the “TRC/TRP Merger Agreement”), dated November 2, 2015, by and among us, the general partner of TRP, TRC and Spartan Merger Sub LLC, a subsidiary of us (“Merger Sub”) and we acquired indirectly all of the outstanding TRP common units that we and our subsidiaries did not already own. Upon the terms and conditions set forth in the TRC/TRP Merger Agreement, Merger Sub merged with and into TRP (the “TRC/TRP Merger”), with TRP continuing as the surviving entity and as a subsidiary of TRC. At the effective time of the TRC/TRP Merger, each outstanding TRP common unit not owned by us or our subsidiaries was converted into the right to receive 0.62 shares of our common stock. We issued 104,525,775 shares of our common stock to third-party unitholders of the common units of the Partnership in exchange for all of the 168,590,009 outstanding common units of the Partnership that we previously did not own. No fractional shares were issued in the TRC/TRP Merger, and TRP common unitholders instead received cash in lieu of fractional shares. There were no changes to our other interests in the Partnership. TRP’s 5,000,000 9.0% Series A Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Units (the “Preferred Units”) remain outstanding after the TRC/TRP Merger. The Preferred Units are listed on the NYSE under “NGLS PRA” and are publicly traded. The Preferred Units are reported as noncontrolling interests in our financial statements. As we continue to control the Partnership, the change in our ownership interest as a result of the TRC/TRP Merger is accounted for as an equity transaction, which is reflected in our Consolidated Balance Sheet as a reduction of noncontrolling interests and a corresponding increase in common stock and additional paid in capital. The TRC/TRP Merger is a taxable exchange resulting in a book/tax difference in the basis of the underlying assets acquired (our investment in TRP). A preliminary deferred tax liability of approximately $950 million has been recorded, computed as $9.0 billion book basis in excess of $6.5 billion tax basis at our statutory tax rate of 37.11%. This tax impact is presented as a decrease to additional paid-in capital consistent with the accounting for tax effects of transactions with noncontrolling interests: Additional Accumulated TRC's Total Common paid-in Retained other comprehensive stockholders' Noncontrolling owners' shares capital earnings income (loss) equity interests (1) equity Shares issued for the Merger $ 0.1 $ 1,803.0 $ — $ — $ 1,803.1 $ (4,119.7 ) $ (2,316.6 ) Impact of NCI acquisition on TRC owners' equity — 2,226.7 — 89.9 2,316.6 — 2,316.6 Deferred tax adjustments — (918.4 ) — (34.2 ) (952.6 ) — (952.6 ) Transaction costs, net of tax — (14.9 ) — — (14.9 ) — (14.9 ) Acquisition of TRP noncontrolling common interests $ 0.1 $ 3,096.4 $ — $ 55.7 $ 3,152.2 $ (4,119.7 ) $ (967.5 ) ______________________ (1) Reflects the February 17, 2016 book value of the publicly held interests in TRP. The equity interests in TRP (which are consolidated in our financial statements) that were owned by the public prior to February 17, 2016 are reflected within “Noncontrolling interests” in our Consolidated Balance Sheets for periods prior to the merger date. The earnings recorded by TRP that were attributed to its common units held by the public prior to February 17, 2016 are reflected within “Net income attributable to noncontrolling interests” in our Consolidated Statements of Operations for periods prior to the merger date. Revisions of Previously Reported Activity in our Consolidated Statements of Comprehensive Income (Loss) During the first quarter of 2016 we concluded that activity related to our commodity hedge contracts was not reported properly in our Consolidated Statements of Comprehensive Income (Loss) during 2015. The errors resulted in misstatements of the statement caption “Change in fair value” and equal offsetting misstatements of the caption “Settlements reclassified to revenues.” Related income tax effects were also misstated. We concluded that these misstatements were not material to any of the periods affected, as reported “Total Other Comprehensive Income” is unchanged. However, we have revised previous Consolidated Statements of Comprehensive Income (Loss) reported during 2015 to properly reflect changes in fair value and settlements reclassified to revenues. There is no impact on previously reported net income, total comprehensive income, cash flows, financial position or other profitability measures. The following table displays the impact of these revisions to activity reported in our Consolidated Statements of Comprehensive Income (Loss) during the three and nine months ended September 30, 2015 and the year ended December 31, 2015: Three Months Ended Nine Months Ended September 30, 2015 September 30, 2015 As Reported As Corrected As Reported As Corrected Pre-Tax Related Income Tax After Tax Pre-Tax Related Income Tax After Tax Pre-Tax Related Income Tax After Tax Pre-Tax Related Income Tax After Tax Targa Resources Corp. Commodity hedging contracts: Change in fair value $ 4.6 $ (1.7 ) $ 2.9 $ 5.5 $ (2.0 ) $ 3.5 $ 5.2 $ (2.0 ) $ 3.2 $ 7.5 $ (2.9 ) $ 4.6 Settlements reclassified to revenues (1.8 ) 0.7 (1.1 ) (2.7 ) 1.0 (1.7 ) (4.5 ) 1.7 (2.8 ) (6.8 ) 2.6 (4.2 ) Other comprehensive income (loss) attributable to Targa Resources Corp. 2.8 (1.0 ) 1.8 2.8 (1.0 ) 1.8 0.7 (0.3 ) 0.4 0.7 (0.3 ) 0.4 Noncontrolling interests Commodity hedging contracts: Change in fair value 38.3 - 38.3 45.2 - 45.2 54.2 - 54.2 70.1 - 70.1 Settlements reclassified to revenues (14.9 ) - (14.9 ) (21.8 ) - (21.8 ) (36.6 ) - (36.6 ) (52.5 ) - (52.5 ) Other comprehensive income (loss) attributable to noncontrolling interests 23.4 - 23.4 23.4 - 23.4 17.6 - 17.6 17.6 - 17.6 Total Commodity hedging contracts: Change in fair value 42.9 (1.7 ) 41.2 50.7 (2.0 ) 48.7 59.4 (2.0 ) 57.4 77.6 (2.9 ) 74.7 Settlements reclassified to revenues (16.7 ) 0.7 (16.0 ) (24.5 ) 1.0 (23.5 ) (41.1 ) 1.7 (39.4 ) (59.3 ) 2.6 (56.7 ) Other comprehensive income (loss) $ 26.2 $ (1.0 ) $ 25.2 $ 26.2 $ (1.0 ) $ 25.2 $ 18.3 $ (0.3 ) $ 18.0 $ 18.3 $ (0.3 ) $ 18.0 Year Ended December 31, 2015 As Reported As Corrected Pre-Tax Related Income Tax After Tax Pre-Tax Related Income Tax After Tax Targa Resources Corp. Commodity hedging contracts: Change in fair value $ 7.4 $ (2.8 ) $ 4.6 $ 11.0 $ (4.2 ) $ 6.8 Settlements reclassified to revenues (5.9 ) 2.2 (3.7 ) (9.5 ) 3.6 (5.9 ) Other comprehensive income (loss) attributable to Targa Resources Corp. 1.5 (0.6 ) 0.9 1.5 (0.6 ) 0.9 Noncontrolling interests Commodity hedging contracts: Change in fair value 73.8 - 73.8 101.7 - 101.7 Settlements reclassified to revenues (48.9 ) - (48.9 ) (76.8 ) - (76.8 ) Other comprehensive income (loss) attributable to noncontrolling interests 24.9 - 24.9 24.9 - 24.9 Total Commodity hedging contracts: Change in fair value 81.2 (2.8 ) 78.4 112.7 (4.2 ) 108.5 Settlements reclassified to revenues (54.8 ) 2.2 (52.6 ) (86.3 ) 3.6 (82.7 ) Other comprehensive income (loss) $ 26.4 $ (0.6 ) $ 25.8 $ 26.4 $ (0.6 ) $ 25.8 |
Significant Accounting Policies
Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Note 3 — Significant Accounting Policies Accounting Policy Updates The accounting policies that we follow are set forth in Note 3 – Significant Accounting Policies of the Notes to Consolidated Financial Statements in our Annual Report and our Current Report on Form 8-K filed with the SEC on May 23, 2016. There were no significant updates or revisions to our policies during the nine months ended September 30, 2016, except as noted below. Recent Accounting Pronouncements Revenue from Contracts with Customers In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606) Revenue Recognition Other Assets and Deferred Costs – Contracts with Customers With the issuance in August 2015 of ASU 2015-14 , Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing In May 2016, the FASB issued ASU 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients We expect to adopt these updates in their entirety on January 1, 2018, and are continuing to evaluate the impact on our revenue recognition practices. Consolidation In February 2015, the FASB issued ASU 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis Presentation of Debt Issuance Costs In April 2015, the FASB issued ASU 2015-03, Interest – Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs Leases In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) We expect to adopt the amendments in the first quarter of 2019 and are currently evaluating the impacts of the amendments to our consolidated financial statements and accounting practices for leases. Share-Based Compensation In March 2016, the FASB issued ASU 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting We adopted the applicable amendments in the second quarter of 2016 and have applied the guidance as of January 1, 2016. Amendments related to the timing of when excess tax benefits and deficiencies are recognized, minimum statutory withholding requirements, and forfeitures have been applied using a modified retrospective transition method but resulted in no cumulative effect adjustment to equity. The amendment related to the presentation of employee taxes paid on the statement of cash flows when an employer withholds shares to meet the minimum statutory withholding requirement had no impact as we previously classified these payments as a financing activity and continue to do so. The amendment requiring recognition of excess tax benefits and tax deficiencies in the income statement has been applied prospectively. We have elected to apply the amendment related to the presentation of excess tax benefits and deficiencies on the statement of cash flows on a prospective basis and prior periods have not been adjusted. We recognized $0.3 million and $2.6 million of excess tax deficiencies in income tax expense for the three and nine months ended September 30, 2016. Our diluted earnings per share calculation has been adjusted for the three and nine months ended September 30, 2016, to exclude windfall tax benefits in assumed proceeds under the treasury stock method. In addition, we have elected to account for forfeitures as they occur. Measurement of Credit Losses on Financial Instruments In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. Cash Flow Classification In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force) Recognition of Intra-Entity Transfers of Assets Other than Inventory In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other than Inventory |
Business Acquisitions
Business Acquisitions | 9 Months Ended |
Sep. 30, 2016 | |
Business Combinations [Abstract] | |
Business Acquisitions | Note 4 – Business Acquisitions 2015 Acquisition Atlas Mergers On February 27, 2015, Targa completed the transactions contemplated by the Agreement and Plan of Merger, dated as of October 13, 2014 (the “ATLS Merger Agreement”), by and among (i) Targa, Targa GP Merger Sub LLC, a Delaware limited liability company and a wholly owned subsidiary of Targa (“GP Merger Sub”), Atlas Energy L.P., a Delaware limited partnership (“ATLS”) and Atlas Energy GP, LLC, a Delaware limited liability company and the general partner of ATLS (“ATLS GP”), and (ii) Targa and the Partnership completed the transactions contemplated by the Agreement and Plan of Merger (the “APL Merger Agreement” and, together with the ATLS Merger Agreement, the “Atlas Merger Agreements”) by and among Targa, the Partnership, the Partnership’s general partner, Trident MLP Merger Sub LLC, a Delaware limited liability company and a wholly owned subsidiary of the Partnership (“MLP Merger Sub”), ATLS, Atlas Pipeline Partners L.P., a Delaware limited partnership (“APL”) and Atlas Pipeline Partners GP, LLC, a Delaware limited liability company and the general partner of APL (“APL GP”). Pursuant to the terms and conditions set forth in the ATLS Merger Agreement, GP Merger Sub merged (the “ATLS merger”) with and into ATLS, with ATLS continuing as the surviving entity and as a subsidiary of Targa. Pursuant to the terms and conditions set forth in the APL Merger Agreement, MLP Merger Sub merged (the “APL merger” and, together with the ATLS merger, the “Atlas mergers”) with and into APL, with APL continuing as the surviving entity and as a subsidiary of the Partnership. While the Atlas mergers were two separate legal transactions, for GAAP reporting purposes, they are viewed as a single integrated transaction. In connection with the Atlas mergers, APL changed its name to “Targa Pipeline Partners LP,” which we refer to as TPL, and ATLS changed its name to “Targa Energy LP.” In addition, prior to the completion of the Atlas mergers, ATLS, pursuant to a separation and distribution agreement entered into by and among ATLS, ATLS GP and Atlas Energy Group, LLC, a Delaware limited liability company (“AEG”), on February 27, 2015, (i) transferred its assets and liabilities other than those related to its “Atlas Pipeline Partners” segment, to AEG and (ii) effected a pro rata distribution to the ATLS unitholders of AEG common units representing a 100% interest in AEG (collectively, the “Spin-Off” and, together with the Atlas mergers, the “Atlas Transactions”). On February 27, 2015, the Partnership’s partnership agreement (the “Partnership Agreement’) was amended to provide for the issuance of a special general partner interest in the Partnership (the “Special GP Interest”) representing the contribution to the Partnership of the APL GP interest acquired in the ATLS merger totaling $1.6 billion, which is reflected within Additional paid-in capital on the Consolidated Balance Sheets. The Special GP Interest is not entitled to current distributions or allocations of net income or loss, and has no voting rights or other rights except for the limited right to receive deductions attributable to the contribution of APL GP and the right to distributions in liquidation. The Partnership acquired all of the outstanding units of APL for a total purchase price of approximately $5.3 billion (including $1.8 billion of acquired debt and all other assumed liabilities). Of the $1.8 billion of debt acquired and other liabilities assumed, approximately $1.2 billion of the acquired debt was tendered and settled upon the closing of the Atlas mergers via the Partnership’s January 2015 cash tender offers. These tender offers were in connection with, and conditioned upon, the consummation of the merger with APL. The merger with APL, however, was not conditioned on the consummation of the tender offers. On that same date, we acquired ATLS for a total purchase price of approximately $1.6 billion (including all assumed liabilities). Pursuant to the APL Merger Agreement, Targa agreed to cause the general partner of the Partnership to amend the Partnership Agreement, which we refer to as the “IDR Giveback Amendment”, in order to reduce aggregate distributions to us, as the holder of the Partnership’s IDRs, by (a) $9,375,000 per quarter during the first four quarters following the APL merger, (b) $6,250,000 per quarter for the next four quarters, (c) $2,500,000 per quarter for the next four quarters and (d) $1,250,000 per quarter for the next four quarters, with the amount of such reductions to be distributed pro rata to the holders of the Partnership’s outstanding common units. TPL is a provider of natural gas gathering, processing and treating services primarily in the Anadarko, Arkoma and Permian Basins located in the southwestern and mid-continent regions of the United States and in the Eagle Ford Shale in South Texas. The Atlas mergers added TPL’s Woodford/SCOOP, Mississippi Lime, Eagle Ford and additional Permian assets to the Partnership’s existing operations. In total, TPL added 2,053 MMcf/d of processing capacity and 12,220 miles of additional pipeline. The operating results of TPL are reported in our Gathering and Processing segment. The APL merger was a unit-for-unit transaction with an exchange ratio of 0.5846 of the Partnership’s common units (the “APL Unit Consideration”) and $1.26 in cash for each APL common unit (the “APL Cash Consideration” and, with the APL Unit Consideration, the “APL Merger Consideration”), a $128.0 million total cash payment, of which $0.6 million was expensed at the acquisition date as the cash payment representing accelerated vesting of a portion of retained employees’ APL phantom awards. The Partnership issued 58,614,157 of its common units and awarded 629,231 replacement phantom unit awards with a combined value of approximately $2.6 billion as consideration for the APL merger (based on the $43.82 closing market price of a common unit on the NYSE on February 27, 2015). The cash component of the APL merger also included $701.4 million for the mandatory repayment and extinguishment at closing of the APL Senior Secured Revolving Credit Facility that was to mature in May 2017 (the “APL Revolver”), $28.8 million of payments related to change of control and $6.4 million of cash paid in lieu of unit issuances in connection with settlement of APL equity awards for AEG employees. In March 2015, we contributed $52.4 million to the Partnership to maintain our 2% general partner interest. In addition, pursuant to the APL Merger Agreement, APL exercised its right under the certificate of designations of the APL 8.25% Class E cumulative redeemable perpetual preferred units (“Class E Preferred Units”) to redeem the APL Class E Preferred Units immediately prior to the effective time of the APL merger. The ATLS merger was a stock-for-unit transaction with an exchange ratio of 0.1809 of Targa common stock, par value $0.001 per share (the “ATLS Stock Consideration”), and $9.12 in cash for each ATLS common unit (the ATLS Cash Consideration” and, with the ATLS Stock Consideration, the “ATLS Merger Consideration”), (a $514.7 million total cash payment). We issued 10,126,532 of our common shares and awarded 81,740 replacement restricted stock units with a combined value of approximately $1.0 billion for the ATLS merger (based on the $99.58 closing market price of a TRC common share on the NYSE on February 27, 2015). The cash component of the ATLS merger also included approximately $149.2 million of payments related to change of control and cash settlements of equity awards, $88.0 million for repayment of a portion of ATLS outstanding indebtedness and $11.0 million for reimbursement of certain transaction expenses. Approximately $4.5 million of the one-time cash payments and cash settlements of equity awards, which represent accelerated vesting of a portion of retained employees’ ATLS phantom units, were expensed at the acquisition date. ATLS owned, directly and indirectly, 5,754,253 APL common units immediately prior to closing. Our acquisition of ATLS resulted in us acquiring these common units (converted to 3,363,935 Partnership common units) valued at approximately $147.4 million (based on the $43.82 closing market price of a Partnership common unit on the NYSE on February 27, 2015) and the right to receive the units’ one-time cash payment of approximately $7.3 million, which reduced the consolidated purchase price by approximately $154.7 million. All outstanding ATLS equity awards, whether vested or unvested, were adjusted in connection with the Spin-Off on the terms and conditions set forth in an Employee Matters Agreement entered into by ATLS, ATLS GP and AEG on February 27, 2015. Following the Spin-Off-related adjustment and at the effective time of the ATLS merger, each outstanding ATLS option and ATLS phantom unit award, whether vested or unvested, held by a person who became an employee of AEG became fully vested (to the extent not vested) and was cancelled and converted into the right to receive the ATLS Merger Consideration in respect of each ATLS common unit underlying the ATLS option or phantom unit award (in the case of options, net of the applicable exercise price). Each outstanding vested ATLS option held by an employee of APL who became an employee of the Company in connection with the Atlas Transactions (a “Midstream Employee”) was cancelled and converted into the right to receive the ATLS Merger Consideration in respect of each ATLS common unit underlying the vested ATLS option, net of the applicable exercise price. Each outstanding unvested ATLS option and each outstanding ATLS phantom unit award held by a Midstream Employee was cancelled and converted into the right to receive (1) the ATLS Cash Consideration in respect of each ATLS common unit underlying such ATLS option or phantom unit award and (2) a TRC restricted stock unit award with respect to a number of shares of TRC Common Stock equal to the product of the ATLS Stock Consideration multiplied by the number of ATLS common units underlying such ATLS option or phantom unit award (in the case of options, net of the applicable exercise price). In connection with the APL merger, each outstanding APL phantom unit award held by an employee of AEG became fully vested and was cancelled and converted into the right to receive the APL Merger Consideration in respect of each APL common unit underlying the APL phantom unit award. Each outstanding APL phantom unit award held by a Midstream Employee was cancelled and converted into the right to receive (1) the APL Cash Consideration in respect of each APL common unit underlying such APL phantom unit award and (2) a Partnership phantom unit award with respect to a number of the Partnership’s common units equal to the product of the APL Unit Consideration multiplied by the number of APL common units underlying such APL phantom unit award. The acquired business contributed revenues of $1,065.7 million and a net loss of $1.0 million to the Company for the period from February 27, 2015 to September 30, 2015, and is reported in our Gathering and Processing segment. As of September 30, 2015, we had incurred $27.3 million of acquisition-related costs. These expenses are included in other expense in our Consolidated Statements of Operations for the nine months ended September 30, 2015. As of September 30, 2016, cumulative acquisition-related costs totaled $27.3 million. Pro Forma Impact of Atlas Mergers on Consolidated Statement of Operations The following summarized unaudited pro forma Consolidated Statement of Operations information for the nine months ended September 30, 2015 assumes that the Partnership’s acquisition of APL and our acquisition of ATLS had occurred as of January 1, 2014. We prepared the following summarized unaudited pro forma financial results for comparative purposes only. The summarized unaudited pro forma financial results may not be indicative of the results that would have occurred if we had completed these acquisitions as of January 1, 2014, or that the results that will be attained in the future. Amounts presented below are in millions. September 30, 2015 Pro Forma Revenues $ 5,299.9 Net income 62.2 The pro forma consolidated results of operations amounts have been calculated after applying our accounting policies, and making adjustments to: • Reflect the change in amortization expense resulting from the difference between the historical balances of APL’s intangible assets, net, and the fair value of intangible assets acquired. • Reflect the change in depreciation expense resulting from the difference between the historical balances of APL’s property, plant and equipment, net, and the fair value of property, plant and equipment acquired. • Reflect the change in interest expense resulting from our financing activities directly related to the Atlas mergers as compared to APL’s historical interest expense. • Reflect the changes in stock-based compensation expense related to the fair value of the unvested portion of replacement Partnership Long Term Incentive Plan (“LTIP”) awards that were issued in connection with the acquisition to APL phantom unitholders who continue to provide service as Targa employees following the completion of the APL merger. • Remove the results of operations attributable to the February 2015 transfer to Atlas Resource Partners, L.P. of 100% of APL’s interest in gas gathering assets located in the Appalachian Basin of Tennessee. • Exclude $27.3 million of acquisition-related costs incurred as of September 30, 2015 from pro forma net income for the nine months ended September 30, 2015. • Reflect the change in APL’s revenues and product purchases to report plant sales of Y-grade at contractual net values to conform to our accounting policy. The following table summarizes the consideration transferred to acquire ATLS and APL: Fair Value of Consideration Transferred: Cash paid, net of cash acquired (1): TRC $ 745.7 TRP 828.7 Common shares of TRC 1,008.5 Replacement restricted stock units awarded (2) 5.2 Common units of TRP 2,421.1 Replacement phantom units awarded (2) 15.0 Total $ 5,024.2 (1) Net of cash acquired of $40.8 million. (2) The fair value of consideration transferred in the form of replacement restricted stock unit awards and replacement phantom unit awards represent the allocation of the fair value of the awards to the pre-combination service period. The fair value of the awards associated with the post-combination service period will be recognized over the remaining service period of the award. Our final fair value determination related to the Atlas mergers was as follows: Fair value determination: February 27, 2015 Trade and other current receivables, net $ 181.1 Other current assets 24.4 Assets from risk management activities 102.1 Property, plant and equipment 4,616.9 Investments in unconsolidated affiliates 214.5 Intangible assets 1,354.9 Other long-term assets 5.5 Current liabilities (259.3 ) Long-term debt (1,573.3 ) Deferred income tax liabilities, net (13.6 ) Other long-term liabilities (119.1 ) Total identifiable net assets 4,534.1 Noncontrolling interest in subsidiaries (216.9 ) Goodwill 707.0 Total fair value of consideration transferred $ 5,024.2 During the three months ended June 30, 2015, we recorded measurement-period adjustments to our acquisition date fair values due to the refinement of our valuation models, assumptions and inputs. As a result, the Consolidated Statement of Operations for the three months ended March 31, 2015 was retrospectively adjusted for the impact of measurement-period adjustments to property, plant and equipment, intangible assets, and investments in unconsolidated affiliates. These adjustments resulted in a decrease in depreciation and amortization expense of $1.0 million, and an increase in equity earnings of $0.3 million from the amounts previously reported in our Form 10-Q for the quarter ended March 31, 2015. During the three months ended September 30, 2015, we recorded additional measurement-period adjustments to our acquisition date fair values due to the refinement of our valuation models, assumptions and inputs. In accordance with ASU 2015-16, we recognized these measurement-period adjustments in the third quarter of 2015, with the effect on the Consolidated Statements of Operations resulting from the change to the provisional amounts calculated as if the acquisition had been completed at February 27, 2015. During the three months ended September 30, 2015, the acquisition date fair value of property, plant and equipment increased by $9.9 million, investments in unconsolidated affiliates increased by $5.5 million, intangible assets decreased by $5.0 million, current liabilities increased by $2.4 million, other assets decreased by $1.0 million, and other current assets decreased by $0.6 million, which resulted in a decrease in goodwill of $6.4 million. These adjustments resulted in increased revenues of $0.6 million, a reduction of operating expenses of $1.9 million, depreciation and amortization expense of $0.1 million and equity losses of $0.1 million recorded in the three months ended September 30, 2015, which, under the prior accounting standard, would have been reflected in previous reporting periods. During the three months ended December 31, 2015, we recorded additional measurement-period adjustments to our acquisition date fair values due to the refinement of our valuation models, assumptions and inputs, as well as adjustments to previously reported preliminary fair values as a result of our review procedures over the development and application of inputs, assumptions and calculations used in cash-flow based fair value measurements associated with business combinations not operating as designed (as previously disclosed in our 2015 Annual Report on Form 10-K). We recognized these adjustments in the fourth quarter of 2015, with the effect on the Consolidated Statements of Operations resulting from the change to the provisional amounts calculated as if the acquisition had been completed at February 27, 2015. During the three months ended December 31, 2015, the acquisition date fair value of intangible assets increased $155.9 million, noncontrolling interest in subsidiaries increased $103.5 million, other long-term liabilities increased $110.1 million, property, plant and equipment decreased by $86.2 million, investments in unconsolidated affiliates decreased by $5.2 million, deferred tax liabilities increased by $5.0 million, current liabilities increased by $1.3 million, other assets decreased by $0.1 million and other current assets decreased by $0.1 million, which resulted in an increase in goodwill of $155.6 million. These adjustments resulted in depreciation and amortization expenses of $2.0 million, a net decrease to interest expense of $26.2 million, equity earnings of $0.2 million, and a reduction of general and administrative expenses of $0.4 million, recorded in the three months ended December 31, 2015, which, under the prior accounting standard, would have been reflected in previous reporting periods. The valuation of the acquired assets and liabilities was prepared using fair value methods and assumptions including projections of future production volumes and cash flows, benchmark analysis of comparable public companies, expectations regarding customer contracts and relationships, and other management estimates. The fair value measurements of assets acquired and liabilities assumed are based on inputs that are not observable in the market and therefore represent Level 3 inputs, as defined in Note 16 – Fair Value Measurements. These inputs require significant judgments and estimates at the time of valuation. The excess of the purchase price over the fair value of net assets acquired was approximately $707.0 million, which was recorded as goodwill. The determination of goodwill is attributable to the workforce of the acquired business and the expected synergies. The goodwill is amortizable for tax purposes. The fair value of assets acquired included trade receivables of $178.1 million. The gross amount due under contracts was $178.1 million, all of which was expected to be collectible. The fair value of assets acquired included other receivables of $3.0 million reported in current receivables and $4.5 million reported in other long-term assets related to a contractual settlement with a counterparty. Mandatorily Redeemable Preferred Interests Other long-term liabilities acquired included $109.3 million related to mandatorily redeemable preferred interests held by our partner in two joint ventures (see Note 10 – Other Long-Term Liabilities). Contingent Consideration A liability arising from the contingent consideration for APL’s previous acquisition of a gas gathering system and related assets has been recognized at fair value. APL agreed to pay up to an additional $6.0 million if certain volumes are achieved on the acquired gathering system within a specified time period. The fair value of the remaining contingent payment is recorded within other long term liabilities on our Consolidated Balance Sheets. The range of the undiscounted amount that we could pay related to the remaining contingent payment is between $0.0 and $6.0 million. We finalized our acquisition analysis and modeling of this contingent liability during the three months ended June 30, 2015, which resulted in an acquisition date fair value of $4.2 million. Subsequent changes in the fair value of this liability are included in earnings. Replacement Restricted Stock Units (“RSUs”) In connection with the ATLS merger, we awarded RSUs in accordance with and as required by the Atlas Merger Agreements to those APL employees who became Targa employees after the acquisition. The vesting dates and terms remained unchanged from the existing ATLS awards, and vest over the remaining terms of the awards, which are either 25% per year over the original four year term or 25% after the third year of the original term and 75% after the fourth year of the original term. Each RSU will entitle the grantee to one common share on the vesting date and is an equity-settled award. The RSUs include dividend equivalents. When we declare and pay cash dividends, the holders of RSUs are entitled within 60 days to receive cash payment of dividend equivalents in an amount equal to the cash dividends the holders would have received if they were the holders of record on the record date of the number of our common shares related to the RSUs. The fair value of the RSUs was based on the closing price of our common shares at the close of trading on February 27, 2015. The fair value was allocated between the pre-acquisition and post-acquisition periods to determine the amount to be treated as purchase consideration and future compensation expense, respectively. Compensation cost will be recognized in general and administrative expense over the remaining service period of each award. Replacement Phantom Units In connection with the APL merger, the Partnership awarded replacement phantom units in accordance with and as required by the Atlas Merger Agreements to those APL employees who became Targa employees after the acquisition. The vesting dates and terms remained unchanged from the existing APL awards, and vest over the remaining terms of the awards, which are either 25% per year over the original four year term or 33% per year over the original three year term. Each replacement phantom unit will entitle the grantee to common stock on the vesting date and is an equity-settled award. The replacement phantom units include distribution equivalent rights (“DERs”). When the Partnership declares and pays cash distributions, the holders of replacement phantom units are entitled within 60 days to receive cash payment of DERs in an amount equal to the cash distributions the holders would have received if they were the holders of record on the record date of the number of the Partnership’s common units related to the replacement phantom units. The fair value of the replacement phantom units was based on the closing price of the Partnership’s units at the close of trading on February 27, 2015. The fair value was allocated between the pre-acquisition and post-acquisition periods to determine the amount to be treated as purchase consideration and compensation expense, respectively. Compensation cost will be recognized in general and administrative expense over the remaining service period of each award. Goodwill We recognized goodwill at a fair value of approximately $707.0 million associated with the Atlas mergers as of the acquisition date on February 27, 2015. Goodwill has been attributed to the WestTX, SouthTX and SouthOK reporting units in our Gathering and Processing segment. As a result, any level of decrease in the forecasted cash flows from the date of acquisition would likely result in the fair value of the reporting unit to fall below the carrying value of the reporting unit, and could result in an impairment of that reporting unit’s goodwill. As described in Note 3 – Significant Accounting Policies, we evaluate goodwill for impairment at least annually on November 30, or more frequently if we believe necessary based on events or changes in circumstances. As of December 31, 2015, we had not completed our November 30, 2015 impairment assessment. Based on the results of that preliminary evaluation, we recorded a provisional goodwill impairment of $290.0 million during the fourth quarter of 2015. The provisional goodwill impairment reduced the carrying value of goodwill to $417.0 million on our Consolidated Balance Sheets as of December 31, 2015. During the first quarter of 2016, we finalized our evaluation of goodwill for impairment and recorded additional impairment expense of $24.0 million in our Consolidated Statement of Operations and reduced the carrying value of goodwill to $393.0 million on our Consolidated Balance Sheets. The impairment of goodwill is primarily due to the effects of lower commodity prices, and a higher cost of capital for companies in our industry compared to conditions in February 2015 when we acquired Atlas. Our evaluation as of November 30, 2015 utilized the income approach (a discounted cash flow analysis (“DCF”)) to estimate the fair values of our reporting units. The future cash flows for our reporting units are based on our estimates, at that time, of future revenues, income from operations and other factors, such as working capital and capital expenditures. We take into account current and expected industry and market conditions, commodity pricing and volumetric forecasts in the basins in which the reporting units operate. The discount rates used in our DCF analysis are based on a weighted average cost of capital determined from relevant market comparisons. Changes in the gross amounts of our goodwill are as follows: WestTX SouthTX SouthOK Total Balance at January 1, 2015 $ — $ — $ — $ — Acquisition, February 27, 2015 364.5 160.3 182.2 707.0 Provisional Impairment (recorded 4Q 2015) (37.6 ) (70.2 ) (182.2 ) (290.0 ) Balance at December 31, 2015 326.9 90.1 — 417.0 Additional Impairment (recorded 1Q 2016) (14.4 ) (9.6 ) — (24.0 ) Balance at September 30, 2016 $ 312.5 $ 80.5 $ — $ 393.0 The sustained decrease and uncertain outlook in commodity prices and volumes have adversely impacted our customers and their future capital and operating plans. A continued or prolonged period of lower commodity prices could result in further deterioration of reporting unit fair values and potential further impairment charges related to goodwill and property, plant and equipment. There were no impairment triggers identified or further impairment charges recognized in the third quarter of 2016. Subsequent Event On October 31, 2016, we executed a Membership Interest Sale and Purchase Agreement with Chevron U.S.A. Inc. to acquire their 37% membership interest in Versado Gas Processors, L.L.C. (“Versado”). Targa held a 63% controlling interest in Versado prior to this transaction and consolidated Versado. As we continue to control Versado, the change in our ownership interest will be accounted for as an equity transaction and no gain or loss will be recognized in our Consolidated Statements of Operations as a result. See Note 17 – Contingencies. |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 5 — Inventories September 30, 2016 December 31, 2015 Commodities $ 139.3 $ 128.3 Materials and supplies 11.0 12.7 $ 150.3 $ 141.0 |
Property, Plant and Equipment a
Property, Plant and Equipment and Intangible Assets | 9 Months Ended |
Sep. 30, 2016 | |
Property Plant And Equipment And Intangible Assets [Abstract] | |
Property, Plant and Equipment and Intangible Assets | Note 6 — Property, Plant and Equipment and Intangible Assets September 30, 2016 December 31, 2015 Estimated Useful Lives (In Years) Gathering systems $ 6,447.0 $ 6,304.5 5 to 20 Processing and fractionation facilities 3,312.1 2,995.2 5 to 25 Terminaling and storage facilities 1,194.5 1,115.0 5 to 25 Transportation assets 452.1 454.0 10 to 25 Other property, plant and equipment 232.2 221.1 3 to 25 Land 120.6 108.8 — Construction in progress 596.0 736.5 — Property, plant and equipment 12,354.5 11,935.1 Accumulated depreciation (2,674.3 ) (2,232.4 ) Property, plant and equipment, net $ 9,680.2 $ 9,702.7 Intangible assets $ 2,036.6 $ 2,036.6 20 Accumulated amortization (343.6 ) (226.5 ) Intangible assets, net $ 1,693.0 $ 1,810.1 Intangible assets consist of customer contracts and customer relationships acquired in the Atlas mergers in 2015 and our Badlands business acquisition in 2012. The fair values of these acquired intangible assets were determined at the date of acquisition based on the present values of estimated future cash flows. Key valuation assumptions include probability of contracts under negotiation, renewals of existing contracts, economic incentives to retain customers, past and future volumes, current and future capacity of the gathering system, pricing volatility and the discount rate. The fair values of intangible assets acquired in the Atlas mergers have been recorded at a fair value of $1,354.9 million and are being amortized over a 20 year life using the straight-line method, as a reliably determinable pattern of amortization could not be identified. Amortization expense attributable to our intangible assets related to the Badlands acquisition is recorded using a method that closely reflects the cash flow pattern underlying their intangible asset valuation over a 20 year life. The changes in our intangible assets are as follows: Balance at December 31, 2015 $ 1,810.1 Amortization (117.1 ) Balance at September 30, 2016 $ 1,693.0 |
Investments in Unconsolidated A
Investments in Unconsolidated Affiliates | 9 Months Ended |
Sep. 30, 2016 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Investments in Unconsolidated Affiliates | Note 7 – Investments in Unconsolidated Affiliates Our unconsolidated investments consist of a 38.8% non-operated ownership interest in Gulf Coast Fractionators LP (“GCF”) and three non-operated joint ventures in South Texas acquired in the Atlas mergers in 2015: 75% interest in T2 LaSalle; 50% interest in T2 Eagle Ford; and 50% interest in T2 EF Cogen (together the “T2 Joint Ventures”). The T2 Joint Ventures were formed to provide services for the benefit of the joint interest owners. The T2 Joint Ventures have capacity lease agreements with the joint interest owners, which cover the costs of operations of the T2 Joint Ventures. The terms of these joint venture agreements do not afford us the degree of control required for consolidating them in our consolidated financial statements, but do afford us the significant influence required to employ the equity method of accounting. Our maximum exposure to loss as a result of our involvement with the T2 Joint Ventures includes our equity investment, any additional capital contribution commitments and our share of any operating expenses incurred by the T2 Joint Ventures. The following table shows the activity related to our investments in unconsolidated affiliates: GCF T2 LaSalle T2 Eagle Ford T2 EF Cogen Total Balance at December 31, 2015 $ 49.5 $ 63.6 $ 123.8 $ 22.0 $ 258.9 Equity earnings (loss) 1.8 (3.8 ) (6.8 ) (2.6 ) (11.4 ) Cash distributions (1) (4.4 ) — — (0.8 ) (5.2 ) Cash calls for expansion projects — 0.1 4.5 — 4.6 Balance at September 30, 2016 $ 46.9 $ 59.9 $ 121.5 $ 18.6 $ 246.9 (1) Includes $3.4 million in distributions received from GCF and the T2 Joint Ventures in excess of our share of cumulative earnings for the nine months ended September 30, 2016. Such excess distributions are considered a return of capital and disclosed in cash flows from investing activities in the Consolidated Statements of Cash Flows. The recorded value of the T2 Joint Ventures is based on fair values at the date of acquisition which results in an excess fair value of $36.7 million over the book value of the joint venture capital accounts as of September 30, 2016. This basis difference is attributable to depreciable tangible assets and is being amortized over the estimated useful lives of the underlying assets of 20 years on a straight-line basis and is included as a component of equity earnings. See Note 4 - Business Acquisitions for further information regarding the fair value determinations related to the Atlas mergers. |
Accounts Payable and Accrued Li
Accounts Payable and Accrued Liabilities | 9 Months Ended |
Sep. 30, 2016 | |
Payables And Accruals [Abstract] | |
Accounts Payable and Accrued Liabilities | Note 8 — Accounts Payable and Accrued Liabilities September 30, 2016 December 31, 2015 Commodities $ 441.2 $ 385.2 Other goods and services 91.9 142.9 Interest 63.4 81.0 Compensation and benefits 28.0 16.0 Income and other taxes 49.6 13.4 Preferred dividends payable 23.9 0.9 Other 12.8 17.7 $ 710.8 $ 657.1 Accounts payable and accrued liabilities includes $23.7 million and $34.2 million of liabilities to creditors to whom we have issued checks that remain outstanding as of September 30, 2016 and December 31, 2015. |
Debt Obligations
Debt Obligations | 9 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Debt Obligations | Note 9 — Debt Obligations September 30, 2016 December 31, 2015 Current: Obligations of the Partnership: (1) Accounts receivable securitization facility, due December 2016 $ 225.0 $ 219.3 Long-term: TRC obligations: TRC Senior secured revolving credit facility, variable rate, due February 2020 (2) 275.0 440.0 TRC Senior secured term loan, variable rate, due February 2022 160.0 160.0 Unamortized discount (2.3 ) (2.5 ) Obligations of the Partnership: (1) Senior secured revolving credit facility, variable rate, due October 2017 (3) — 280.0 Senior unsecured notes: 5% fixed rate, due January 2018 733.6 1,100.0 4 ⅛ 749.4 800.0 6 ⅝ 309.9 342.1 Unamortized premium 3.9 5.0 6 ⅞ 478.6 483.6 Unamortized discount (19.3 ) (22.1 ) 6 ⅜ 278.7 300.0 5 ¼ 559.6 583.7 4¼% fixed rate, due November 2023 583.9 623.5 6¾% fixed rate, due March 2024 580.1 600.0 APL notes, 6 ⅝ 12.9 12.9 Unamortized premium 0.1 0.2 APL notes, 4¾% fixed rate, due November 2021 (4) 6.5 6.5 APL notes, 5⅞% fixed rate, due August 2023 (4) 48.1 48.1 Unamortized premium 0.5 0.5 4,759.2 5,761.5 Debt issuance costs (33.3 ) (42.7 ) Total long-term debt 4,725.9 5,718.8 Total debt $ 4,950.9 $ 5,938.1 Irrevocable standby letters of credit: Letters of credit outstanding under the TRC Senior secured credit facility (2) $ — $ — Letters of credit outstanding under the Partnership senior secured revolving credit facility (3) 13.5 12.9 $ 13.5 $ 12.9 (1) While we consolidate the debt of the Partnership in our financial statements, we do not have the obligation to make interest payments or debt payments with respect to the debt of the Partnership. (2) As of September 30, 2016, availability under TRC’s $670 million senior secured revolving credit facility (“TRC Revolver”) was $395.0 million. (3) As of September 30, 2016, availability under the Partnership’s $1.6 billion senior secured revolving credit facility (“TRP Revolver”) was $1,586.5 million. In October 2016, the TRP Revolver was amended. See “Subsequent Events – TRP Revolver Amendment.” (4) APL notes are not guaranteed by us or the Partnership. The following table shows the range of interest rates and weighted average interest rate incurred on variable-rate debt obligations during the nine months ended September 30, 2016: Range of Interest Rates Incurred Weighted Average Interest Rate Incurred TRC Revolver 2.2% - 4.5% 2.4% TRC senior secured term loan (1) 5.75% 5.75% TRP Revolver 2.4% - 4.8% 2.6% Partnership's accounts receivable securitization facility 1.2% - 1.3% 1.2% (1) The TRC senior secured term loan is a Eurodollar rate loan with an interest rate of LIBOR (with a LIBOR floor of 1%) plus an applicable rate of 4.75%. Compliance with Debt Covenants As of September 30, 2016, we were in compliance with the covenants contained in our various debt agreements. Debt Repurchases During the nine months ended September 30, 2016, the Partnership repurchased on the open market a portion of its outstanding senior notes (the “Senior Notes”) as follows: Debt Repurchased Book Value Payment Gain/(Loss) Write-off of Debt Issuance Costs Net Gain/(Loss) 5¼% Senior Notes $ 24.1 $ (20.1 ) $ 4.0 $ (0.2 ) $ 3.8 4¼% Senior Notes 39.5 (31.8 ) 7.7 (0.3 ) 7.4 6⅞% Senior Notes 4.8 (4.3 ) 0.5 (0.1 ) 0.4 6⅝% Senior Notes 32.6 (29.5 ) 3.1 - 3.1 6⅜% Senior Notes 21.3 (18.7 ) 2.6 (0.2 ) 2.4 6¾% Senior Notes 19.9 (17.5 ) 2.4 (0.2 ) 2.2 5% Senior Notes 366.4 (368.2 ) (1.8 ) (2.1 ) (3.9 ) 4⅛% Senior Notes 50.6 (44.2 ) 6.4 (0.4 ) 6.0 $ 559.2 $ (534.3 ) $ 24.9 $ (3.5 ) $ 21.4 We or the Partnership may retire or purchase various series of the Partnership’s outstanding debt through cash purchases and/or exchanges for other debt, in open market purchases, privately negotiated transactions or otherwise. Such repurchases or exchanges, if any, will depend on prevailing market conditions, our liquidity requirements, contractual restrictions and other factors. The amounts involved may be material. See “Subsequent Events – Issuance of Senior Notes and Concurrent Senior Notes Tender Offers” and “Subsequent Events – Note Redemptions.” The following table shows the contractually scheduled maturities of the Partnership’s outstanding Senior Notes as of September 30, 2016, for five consecutive years, and in total thereafter: Scheduled Maturities of Debt Total Remainder of 2016 2017 2018 2019 2020 After 2020 (in millions) Partnership's Senior notes $ 4,341.3 $ - $ - $ 733.6 $ 749.4 $ 322.8 $ 2,535.5 Subsequent Events Issuance of Senior Notes and Concurrent Senior Notes Tender Offers In October 2016, the Partnership issued $500.0 million of 5⅛% 5⅜% Concurrently with the October 2016 Offering, the Partnership commenced tender offers (the “Tender Offers”) to purchase for cash, subject to certain conditions, up to specified aggregate maximum purchase amounts of our 5% Senior Notes due January 2018 (the “5% Notes”), 6 ⅝ ⅝ ⅞ ⅞ ⅝ The results of the Tender Offers, which closed in October 2016, were : Senior Notes Outstanding Note Balance Prior to Tender Offers Amount Tendered Premium Paid Accrued Interest Paid Total Tender Offer Payments Note Balance After Tender Offers 5% Senior Notes $ 733.6 $ 483.1 $ 16.9 $ 5.4 $ 505.4 $ 250.5 6⅝% Senior Notes 309.9 281.7 10.5 0.3 292.5 28.2 6⅞% Senior Notes 478.6 373.5 14.4 4.6 392.5 105.1 $ 1,522.1 $ 1,138.3 $ 41.8 $ 10.3 $ 1,190.4 $ 383.8 As a result of the Tender Offers, we will record during the fourth quarter of 2016 a loss due to debt extinguishment of approximately $59.2 million comprised of the $41.8 million premium paid, the write-off of $5.8 million of debt issuance costs, $15.1 million of debt discounts and $3.5 million of debt premiums. Note Redemptions Subsequent to the closing of the Tender Offers in October 2016, the Partnership issued notices of full redemption (the “Note Redemptions”) to the trustees and noteholders of the 6⅝% Notes ⅞ 6⅝% Notes and the 6⅝% ⅞ TRP Revolver Amendment In October 2016, the Partnership entered into the Second Amendment and Restatement Agreement (the “Restatement”) to effectuate the Third Amended and Restated Credit Agreement (the “TRP Credit Agreement”). The TRP Credit Agreement amended and restated the TRP Revolver to extend the maturity date from October 2017 to October 2020. The available commitments under the TRP Revolver of $1.6 billion remained unchanged while the Partnership’s ability to request additional commitments increased from up to $300.0 million to up to $500.0 million. The TRP Revolver continues to bear interest costs that are dependent on the Partnership’s ratio of consolidated funded indebtedness to consolidated adjusted EBITDA, and the covenants also remained substantially the same. The TRP Credit Agreement designates TPL and certain of its subsidiaries as “Restricted Subsidiaries” and provides for certain changes to occur upon the Partnership receiving an investment grade credit rating from Moody’s or S&P, including the release of the security interests in all collateral at the request of the Partnership. As a result of the TRP Credit Agreement, during the fourth quarter of 2016, we will record a partial write-off of $0.9 million of debt issuance costs associated with the TRP Revolver as a result of a change in syndicate members under the TRP Revolver. The remaining deferred debt issuance costs associated with the TRP Revolver along with debt issuance costs incurred with this amendment will be amortized on a straight-line basis over the life of the TRP Revolver. Subsequent to entering into the TRP Credit Agreement, the Partnership executed supplemental indentures relating to all of its outstanding series of Senior Notes to designate TPL and those subsidiaries as Restricted Subsidiaries under the TRP Credit Agreement as guarantors of such Senior Notes. |
Other Long-term Liabilities
Other Long-term Liabilities | 9 Months Ended |
Sep. 30, 2016 | |
Other Liabilities Noncurrent [Abstract] | |
Other Long-term Liabilities | Note 10 — Other Long-term Liabilities Other long-term liabilities are comprised of the following obligations: September 30, 2016 December 31, 2015 Asset retirement obligations $ 64.8 $ 70.4 Mandatorily redeemable preferred interests 64.2 82.9 Deferred revenue and other 30.1 26.9 Total long-term liabilities $ 159.1 $ 180.2 Asset Retirement Obligations Our asset retirement obligations (“ARO”) primarily relate to certain gas gathering pipelines and processing facilities, and are included in our Consolidated Balance Sheets as a component of other long-term liabilities. The changes in our ARO are as follows: Balance at December 31, 2015 $ 70.4 Change in cash flow estimate (9.1 ) Accretion expense 3.5 Balance at September 30, 2016 $ 64.8 Mandatorily Redeemable Preferred Interests Our consolidated financial statements include our interest in two joint ventures that, separately, own a 100% interest in the WestOK natural gas gathering and processing system and a 72.8% undivided interest in the WestTX natural gas gathering and processing system. Our partner in the joint ventures holds preferred interests in each joint venture that are redeemable: (i) at our or our partner’s election, on or after July 27, 2022; and (ii) mandatorily, in July 2037. For reporting purposes under GAAP, an estimate of our partner’s interest in each joint venture is required to be recorded as if the redemption had occurred on the reporting date. Because redemption will not be required until at least 2022, the actual value of our partner’s allocable share of each joint venture’s assets at the time of redemption may differ from our estimate of redemption value as of September 30, 2016. The following table shows the changes attributable to mandatorily redeemable preferred interests: Balance at December 31, 2015 $ 82.9 Income attributable to mandatorily redeemable preferred interests 0.1 Change in estimated redemption value included in interest expense (18.8 ) Balance at September 30, 2016 $ 64.2 |
Preferred Stock
Preferred Stock | 9 Months Ended |
Sep. 30, 2016 | |
Equity [Abstract] | |
Preferred Stock | Note 11 – Preferred Stock Preferred Stock and Detachable Warrants In the first quarter of 2016, TRC sold in two tranches to investors in a private placement 965,100 shares of Series A Preferred Stock (“Series A Preferred”) with detachable Series A Warrants exercisable into a maximum of 13,550,004 shares of our common stock and Series B Warrants exercisable into a maximum of 6,533,727 shares of our common stock (collectively the “Warrants”) for an aggregate purchase price of $994.1 million in cash. The Series A Preferred have a liquidation value of $1,000 per share and bears a cumulative 9.5% fixed dividend payable quarterly 45 days after the end of each fiscal quarter. The Company may, at the sole election of the Board of Directors, elect to pay dividends for any quarter with a paid-in-kind election (“PIK”) through December 31, 2017. Under the PIK election, unpaid dividends would be added to the liquidation preference and a commensurate amount of Series A and Series B Warrants would be issued. The $177.2 million discount on the Series A Preferred created by the relative fair value allocation of proceeds, which is not subject to periodic accretion, would be reported as a deemed dividend in the event a redemption occurs. The Series A Preferred have no mandatory redemption date, but is redeemable at our election in year six for a 10% premium to the liquidation preference and for a 5% premium to the liquidation preference thereafter. If the Series A Preferred is not redeemed by the end of year twelve, the investors have the right to convert the Series A Preferred into TRC common stock at an exercise price of $20.77, which represented a 10% premium over the ten day VWAP (volume weighted average price) prior to the February 18, 2016 signing date ($18.88) of the Purchase Agreement underlying the first tranche. If the investors do not elect to convert their Series A Preferred into TRC common stock, Targa has a right after year twelve to force conversion, but only if the VWAP for the ten preceding trading days is greater than 120% of the conversion price. A change of control provision could result in forced redemption, at the option of the investor, if the Series A Preferred could not otherwise remain outstanding or be replaced with a “substantially equivalent security.” The change of control premium to the liquidation preference on the redemption is initially 25% in year one, 20% in year two, 15% in year three, 10% in years four through six and 5% thereafter. The Series A Preferred ranks senior to the common outstanding stock with respect to the payment of dividends and distributions in liquidation. The holders of Series A Preferred generally only have voting rights in certain circumstances, subject to certain exceptions, which include: • the issuance or the increase by the Company of any specific class or series of stock that is senior to the Series A Preferred, • the issuance or the increase by any of the Company’s consolidated subsidiaries of any specific class or series of securities, • changes to the Certificates of Incorporation or Designations of the Series A Preferred that would materially and adversely affect the Preferred Stock holder, • the issuance of stock on parity with the Series A Preferred, subject to certain exceptions, if the Company has exceeded a stipulated fixed charge coverage ratio or an aggregate amount of net proceeds from all future issuances of Parity Stock, or would use the proceeds of such issuance to pay dividends, • the incurrence of indebtedness, other than indebtedness that complies with a stipulated fixed charge coverage ratio or under the TRC and TRP Credit Agreements (or replacement commercial bank facilities) in an aggregate amount up to $2.75 billion. In addition, observation right status as a Board Observer was granted to an investor with the right to attend full meetings of the Board of Directors (the “Board”) for TRC and to receive materials other members of the Board receive. Only in the event (i) we have not paid distributions with respect to two full quarters (whether or not consecutive) on the Series Preferred or (ii) an event of default occurs with respect only to the financial covenants under the TRC and TRP Credit Agreements, will the investor have the right to turn the Board Observer into a member of the Board to serve until (x) all accrued and unpaid distributions on the Series A Preferred are paid or (y) there is no longer such an event of default, as applicable. The Series A Preferred is a hybrid security and is viewed as a debt host for the purpose of evaluating embedded derivatives. Bifurcation of the Company’s redemption provision is not required because the redemption provision is clearly and closely related to the preferred debt host. Further, both our and the investors’ conversion options qualify for a derivatives scope exception under ASC 815 – Derivatives and Hedging Distinguishing Liabilities from Equity, The detachable Warrants have a seven year term and were exercisable beginning on September 16, 2016. They were issued in two series: Series A Warrants exercisable into a maximum number of 13,550,004 shares of our common stock with an exercise price of $18.88 and 6,533,727 Series B Warrants with an exercise price of $25.11. The Warrants may be net settled in cash or shares of common stock at the Company’s option. The Warrants qualify as freestanding financial instruments and meet the derivatives accounting scope exception in ASC 815 because they are indexed to our equity and otherwise meet the applicable criteria for equity classification. The portion of proceeds allocated to the Series A and Series B Warrants was recorded as additional paid-in capital. Pursuant to the terms of the Registration Rights Agreement covering the common stock issuable upon exercise of the Warrants (the “Warrants Registration Rights Agreement”), we filed a prospectus supplement on June 30, 2016 (the “Warrants Prospectus Supplement”) to our Registration Statement on Form S-3 filed with the SEC on May 23, 2016 (the “May 2016 Shelf” and together with the Warrants Prospectus Supplement, the “Warrants Registration Statement”) for the registered resale by the selling stockholders described therein of 20,083,731 common shares, which is the maximum amount that could be issued upon conversion of the Warrants. We have granted certain demand and piggyback registration rights with respect to the holders of the common shares underlying the Warrants pursuant to the Warrants Registration Rights Agreement. Also under the Warrants Registration Rights Agreement, we are required to use commercially reasonable efforts to keep the Warrants Registration Statement to be continuously effective, until the earliest to occur of the following: (a) the date on which all Registrable Securities (as defined under the Warrants Registration Rights Agreement) covered by the Warrants Registration Statement have been distributed, (b) the date on which there are no longer any Registrable Securities outstanding and (c) the later of (1) the fourth anniversary of the date on which all Warrants have been converted into common shares and (2) if and only if any holder of Registrable Securities is an “affiliate” (as such term is defined in Rule 144 promulgated under the Securities Act) of the Company, the earlier of (x) the date on which such holder is no longer an “affiliate” (as such term is defined in Rule 144 promulgated under the Securities Act) of the Company and (y) March 16, 2028. See Note 12 – Common Stock and Related Matters for further information regarding the exercise of Warrants. Under the Preferred Registration Rights Agreement, if the registration statement is not declared effective by the applicable required effective date, each record holder of the securities to be registered would receive liquidated damages. The Liquidated Damages Multiplier (“the multiplier”) is calculated as the product of (1) $20.77 and (ii) the number of registrable securities by the applicable record holder of any registrable securities. The liquidated damages, which would accrue daily, are an amount equal to 0.25% of the multiplier for the first 60 day period following the Effective Date plus an additional 0.25% of the multiplier for each subsequent 60 days (i.e. 0.5% for 61-120 days, 0.75% for 121-180 days, and 1.0% thereafter), up to a maximum amount equal to 1.0% of the multiplier thereafter. There is no limitation for the maximum potential consideration of liquidated damages. Management believes that remittance of any future payments under these provisions is not probable and therefore has not attributed any allocation of offering proceeds to a contingent liability for registration payment arrangements under ASC 825-20 – Financial Instruments-Registration Payment Arrangements Net cash proceeds of $970.3 million (which reflects payment of $23.8 million transaction fees), were allocated on a relative fair value basis to the Series A Preferred ($787.9 million), Series A Warrants ($135.8 million) and Series B Warrants ($46.6 million). The $177.2 million discount on the Series A Preferred created by the relative fair value allocation of proceeds, which is not subject to periodic accretion, would be reported as a deemed dividend in the event a redemption occurs. As described below, $614.4 million of the $787.9 million allocated to the Series A Preferred is allocated to additional paid-in capital to give effect to the intrinsic value of a beneficial conversion feature (“BCF”). Beneficial Conversion Feature ASC 470-20-20 – Debt – Debt with conversion and Other Options We have the right to redeem the Series A Preferred beginning after year five. As such, we can effectively mitigate or limit the Series A Preferred Holders’ ability to benefit from their conversion right after year twelve by paying either a $96.5 million (10%) redemption premium in year six or a $48.3 million (5%) redemption premium in years seven through twelve. In either case, the redemption premium would be significantly less than the $614.4 million BCF required to be recognized under GAAP. Upon exercise of our redemption rights, any previously recognized accretion of deemed dividends would be reversed in the period of redemption and reflected as income attributable to common shareholders in our Consolidated Statement of Operations and related per share amounts. The following table summarizes the accounting upon issuance of our Series A Preferred: Allocation of Proceeds Additional Paid-in Capital Series A Preferred Stock Series A Warrants Series B Warrants Beneficial Conversion Feature (BCF) Gross proceeds $ 994.1 Transaction fees (23.8 ) Net Proceeds- Initial Relative Fair Value Allocation $ 970.3 $ 787.9 $ 135.8 $ 46.6 $ — Allocation to BCF (614.4 ) — — 614.4 Per balance sheet upon issuance $ 173.5 $ 135.8 $ 46.6 $ 614.4 Preferred Stock Dividends As of September 30, 2016, we have accrued preferred dividends of $22.9 million, which will be paid on November 14, 2016. We paid $26.8 million of dividends to preferred shareholders during the nine months ended September 30, 2016. During the nine months ended September 30, 2016, we recorded deemed dividends of $12.3 million attributable to accretion of the preferred discount resulting from the BCF accounting described above. |
Common Stock and Related Matter
Common Stock and Related Matters | 9 Months Ended |
Sep. 30, 2016 | |
Class Of Stock Disclosures [Abstract] | |
Common Stock and Related Matters | Note 12 — Common Stock and Related Matters Public Offerings of Common Stock In May 2016, we entered into an Equity Distribution Agreement under the May 2016 Shelf (the “May 2016 EDA”) with Barclays Capital Inc., Capital One Securities Inc., Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Goldman, Sachs & Co., Jefferies LLC, J.P. Morgan Securities LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated, Mizuho Securities USA Inc., Morgan Stanley & Co. LLC, RBC Capital Markets, LLC, SunTrust Robinson Humphrey, Inc., and Wells Fargo Securities, LLC, as our sales agents, pursuant to which we may sell, at our option, up to an aggregate of $500.0 million of our common stock. The common stock available for sale under the May 2016 EDA were registered pursuant to a registration statement on Form S-3 filed on May 23, 2016. During the nine months ended September 30, 2016, we issued 9,210,796 shares of common stock under the May 2016 EDA, receiving net proceeds of $398.0 million. TRC/TRP Merger On February 17, 2016, we completed the TRC/TRP Merger (see Note 2 – Basis of Presentation). Warrants The following table sets forth the activity related to detachable Warrants issued as part of our Series A Preferred offering: Shares of Series A Warrants Series B Warrants Common Stock Issued Cash Settled December 31, 2015 — — Issued and exercisable to common stock 13,550,004 6,533,727 Exercised (3,950,856 ) (1,905,078 ) 3,185,623 $ — September 30, 2016 9,599,148 4,628,649 Subsequent Event In October 2016, Series A Warrants exercisable into a maximum of 8,972,964 shares of our common stock and Series B Warrants exercisable into a maximum of 4,326,707 shares of our common stock were exercised by their holders and net settled for 7,633,564 shares of common stock. Dividends The following table details the dividends declared and/or paid by us to common shareholders for the nine months ended September 30, 2016: Three Months Ended Date Paid or To Be Paid Total Common Dividends Declared Amount of Common Dividends Paid or To Be Paid Accrued Dividends (1) Dividend Declared per Share of Common Stock (In millions, except per share amounts) September 30, 2016 November 15, 2016 $ 166.4 $ 164.6 $ 1.8 $ 0.91000 June 30, 2016 August 15, 2016 153.1 151.6 1.5 0.91000 March 31, 2016 May 16, 2016 147.8 146.1 1.7 0.91000 December 31, 2015 February 9, 2016 51.7 51.0 0.7 0.91000 (1) Represents accrued dividends on restricted stock and restricted stock units that are payable upon vesting. Dividends declared are recorded as a reduction of retained earnings to the extent that retained earnings was available at the close of the prior quarter, with any excess recorded as a reduction of additional paid-in capital. |
Partnership Units and Related M
Partnership Units and Related Matters | 9 Months Ended |
Sep. 30, 2016 | |
Partners Capital [Abstract] | |
Partnership Units and Related Matters | Note 13 — Partnership Units and Related Matters Preferred Units As of September 30, 2016, the Partnership has 5,000,000 Preferred Units outstanding. The Partnership paid $8.4 million of distributions to the holders of preferred units (“Preferred Unitholders”) during the nine months ended September 30, 2016. The Preferred Units are reported as noncontrolling interests in our financial statements. On October 17, 2016, the board of directors of the general partner of the Partnership declared a monthly cash distribution of $0.1875 per Preferred Unit for October 2016. This distribution will be paid on November 15, 2016. Distributions In accordance with the Partnership Agreement, the Partnership must distribute all of its available cash, as defined in the Partnership Agreement, and as determined by the general partner, to Preferred Unitholders monthly and to common unitholders of record within 45 days after the end of each quarter. As a result of the TRC/TRP Merger, we are entitled to receive all available Partnership distributions after payment of preferred distributions each quarter. • On February 9, 2016, total distributions of $200.4 million were declared and paid for the three months ended December 31, 2015, of which $61.4 million was paid to us. • On May 12, 2016, distributions declared for the three months ended March 31, 2016 of $154.8 million were paid to us. • On August 11, 2016, distributions declared for the three months ended June 30, 2016 of $178.9 million were paid to us. • On October 19, 2016, distributions of $191.9 million were declared for the three months ended September 30, 2016, which will be paid to us on November 11, 2016. Subsequent Event On October 19, 2016, the Partnership executed the Third Amended and Restated Agreement of Limited Partnership of Targa Resources Partners LP (the “Third A&R Partnership Agreement”), which will be effective as of December 1, 2016. The Third A&R Partnership Agreement amendments include among other things (i) eliminating the IDRs held by the general partner, and related distribution and allocation provisions, (ii) eliminating the Special GP Interest (as defined in the Third A&R Partnership Agreement) held by the general partner, (iii) providing the ability to declare monthly distributions in addition to quarterly distributions, (iv) modifying certain provisions relating to distributions from available cash, (v) eliminating the Class B Unit (as defined in the Third A&R Partnership Agreement) provisions and (vi) changes to the Third A&R Partnership Agreement to reflect the passage of time and to remove provisions that are no longer applicable. |
Earnings per Common Share
Earnings per Common Share | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings per Common Share | Note 14 — Earnings per Common Share The following table sets forth a reconciliation of net income and weighted average shares outstanding (in millions) used in computing basic and diluted net income per common share: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Net income $ (3.2 ) $ 20.8 $ (18.4 ) $ 80.6 Less: Net income attributable to noncontrolling interests 7.5 8.1 18.2 49.2 Less: Dividends on preferred stock 28.7 — 62.0 — Net income attributable to common shareholders for basic earnings per share $ (39.4 ) $ 12.7 $ (98.6 ) $ 31.4 Weighted average shares outstanding - basic 168.0 56.0 145.5 52.6 Net income available per common share - basic $ (0.23 ) $ 0.23 $ (0.68 ) $ 0.60 Weighted average shares outstanding 168.0 56.0 145.5 52.6 Dilutive effect of unvested stock awards — 0.1 — 0.1 Weighted average shares outstanding - diluted 168.0 56.1 145.5 52.7 Net income available per common share - diluted $ (0.23 ) $ 0.23 $ (0.68 ) $ 0.60 The following potential common stock equivalents are excluded from the determination of diluted earnings per share because the inclusion of such shares would have been anti-dilutive (in millions on a weighted-average basis): Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Unvested restricted stock awards 0.8 — 0.5 — Warrants to purchase common stock 8.9 — 6.1 — Series A Preferred Stock 46.5 — 33.7 — |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 9 Months Ended |
Sep. 30, 2016 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | Note 15 — Derivative Instruments and Hedging Activities The primary purpose of our commodity risk management activities is to manage our exposure to commodity price risk and reduce volatility in our operating cash flow due to fluctuations in commodity prices. We have hedged the commodity prices associated with a portion of our expected (i) natural gas equity volumes in our Gathering and Processing segment and (ii) NGL and condensate equity volumes predominately in our Gathering and Processing segment that result from percent-of-proceeds processing arrangements. These hedge positions will move favorably in periods of falling commodity prices and unfavorably in periods of rising commodity prices. We have designated these derivative contracts as cash flow hedges for accounting purposes. The hedges generally match the NGL product composition and the NGL delivery points of our physical equity volumes. Our natural gas hedges are a mixture of specific gas delivery points and Henry Hub. The NGL hedges may be transacted as specific NGL hedges or as baskets of ethane, propane, normal butane, isobutane and natural gasoline based upon our expected equity NGL composition. We believe this approach avoids uncorrelated risks resulting from employing hedges on crude oil or other petroleum products as “proxy” hedges of NGL prices. Our natural gas and NGL hedges are settled using published index prices for delivery at various locations. We hedge a portion of our condensate equity volumes using crude oil hedges that are based on the NYMEX futures contracts for West Texas Intermediate light, sweet crude, which approximates the prices received for condensate. This necessarily exposes us to a market differential risk if the NYMEX futures do not move in exact parity with the sales price of our underlying condensate equity volumes. As part of the Atlas mergers, outstanding APL derivative contracts with a fair value of $102.1 million as of the acquisition date were novated to us and included in the acquisition date fair value of assets acquired. Derivative settlements of $67.9 million and $20.9 million related to these novated contracts were received during the year ended December 31, 2015 and the nine months ended September 30, 2016. These settlements were reflected as a reduction of the acquisition date fair value of the APL derivative assets acquired and had no effect on results of operations. The "off-market" nature of these acquired derivatives can introduce a degree of ineffectiveness for accounting purposes due to an embedded financing element representing the amount that would be paid or received as of the acquisition date to settle the derivative contract. The resulting ineffectiveness can either potentially disqualify the derivative contract in its entirety for hedge accounting or alternatively affect the amount of unrealized gains or losses on qualifying derivatives that can be deferred from inclusion in periodic net income. Additionally, for the three and nine months ended September 30, 2016, we recorded $0.3 million and $0.5 million of ineffectiveness losses related to otherwise qualifying APL derivatives, which are primarily natural gas swaps. At September 30, 2016, the notional volumes of our commodity derivative contracts were: Commodity Instrument Unit 2016 2017 2018 2019 Natural Gas Swaps MMBtu/d 134,436 92,448 68,800 29,683 Natural Gas Basis Swaps MMBtu/d 95,979 58,026 - - Natural Gas Options MMBtu/d 22,900 22,900 9,486 - NGL Swaps Bbl/d 5,073 3,875 2,678 1,779 NGL Futures Bbl/d 85,887 50,889 5,000 - NGL Options Bbl/d 920 1,468 1,676 - Condensate Swaps Bbl/d 2,770 1,850 1,350 223 Condensate Options Bbl/d 790 1,380 691 590 We also enter into derivative instruments to help manage other short-term commodity-related business risks. We have not designated these derivatives as hedges and record changes in fair value and cash settlements to revenues. Our derivative contracts are subject to netting arrangements that permit our contracting subsidiaries to net cash settle offsetting asset and liability positions with the same counterparty within the same Targa entity. We record derivative assets and liabilities on our Consolidated Balance Sheets on a gross basis, without considering the effect of master netting arrangements. The following schedules reflect the fair values of our derivative instruments and their location in our Consolidated Balance Sheets as well as pro forma reporting assuming that we reported derivatives subject to master netting agreements on a net basis: Fair Value as of September 30, 2016 Fair Value as of December 31, 2015 Balance Sheet Derivative Derivative Derivative Derivative Location Assets Liabilities Assets Liabilities Derivatives designated as hedging instruments Commodity contracts Current $ 34.7 $ 12.8 $ 92.1 $ 2.1 Long-term 12.4 17.6 34.9 2.4 Total derivatives designated as hedging instruments $ 47.1 $ 30.4 $ 127.0 $ 4.5 Derivatives not designated as hedging instruments Commodity contracts Current $ 0.1 $ 0.2 $ 0.1 $ 3.1 Total derivatives not designated as hedging instruments $ 0.1 $ 0.2 $ 0.1 $ 3.1 Total current position $ 34.8 $ 13.0 $ 92.2 $ 5.2 Total long-term position 12.4 17.6 34.9 2.4 Total derivatives $ 47.2 $ 30.6 $ 127.1 $ 7.6 The pro forma impact of reporting derivatives in our Consolidated Balance Sheets on a net basis is as follows: Gross Presentation Pro forma net presentation September 30, 2016 Asset Liability Asset Liability Current Position Counterparties with offsetting positions $ 34.1 $ 12.1 $ 22.0 $ - Counterparties without offsetting positions - assets 0.7 - 0.7 - Counterparties without offsetting positions - liabilities - 0.9 - 0.9 34.8 13.0 22.7 0.9 Long Term Position Counterparties with offsetting positions 12.4 14.6 - 2.2 Counterparties without offsetting positions - assets - - - - Counterparties without offsetting positions - liabilities - 3.0 - 3.0 12.4 17.6 - 5.2 Total Derivatives Counterparties with offsetting positions 46.5 26.7 22.0 2.2 Counterparties without offsetting positions - assets 0.7 - 0.7 - Counterparties without offsetting positions - liabilities - 3.9 - 3.9 $ 47.2 $ 30.6 $ 22.7 $ 6.1 Gross Presentation Pro forma net presentation December 31, 2015 Asset Liability Asset Liability Current Position Counterparties with offsetting positions $ 86.9 $ 5.2 $ 81.7 $ - Counterparties without offsetting positions - assets 5.3 - 5.3 - Counterparties without offsetting positions - liabilities - - - - 92.2 5.2 87.0 - Long Term Position Counterparties with offsetting positions 34.2 2.4 31.8 - Counterparties without offsetting positions - assets 0.7 - 0.7 - Counterparties without offsetting positions - liabilities - - - - 34.9 2.4 32.5 - Total Derivatives Counterparties with offsetting positions 121.1 7.6 113.5 - Counterparties without offsetting positions - assets 6.0 - 6.0 - Counterparties without offsetting positions - liabilities - - - - $ 127.1 $ 7.6 $ 119.5 $ - Our payment obligations in connection with a majority of these hedging transactions are secured by a first priority lien in the collateral securing the Partnership’s senior secured indebtedness that ranks equal in right of payment with liens granted in favor of its senior secured lenders. Some of our hedges are futures contracts executed through a broker that clears the hedges through an exchange. On a daily basis, our cash balance with the broker is used to offset the fair value of our open futures positions. The net of our cash on deposit and open futures positions is located within other current assets on our Consolidated Balance Sheets as a broker receivable. The fair value of our derivative instruments, depending on the type of instrument, was determined by the use of present value methods or standard option valuation models with assumptions about commodity prices based on those observed in underlying markets. The estimated fair value of our derivative instruments was a net asset of $16.6 million as of September 30, 2016. The estimated fair value is net of an adjustment for credit risk based on the default probabilities by year as indicated by market quotes for the counterparties’ credit default swap rates. The credit risk adjustment was immaterial for all periods presented. Our futures contracts that are cleared through an exchange are settled daily and do not require any credit adjustment. The following tables reflect amounts recorded in Other Comprehensive Income (“OCI”) and amounts reclassified from OCI to revenue and expense for the periods indicated: Gain (Loss) Recognized in OCI on Derivatives (Effective Portion) Derivatives in Cash Flow Three Months Ended September 30, Nine Months Ended September 30, Hedging Relationships 2016 2015 2016 2015 Commodity contracts $ 12.9 $ 50.7 $ (40.5 ) $ 77.6 Gain (Loss) Reclassified from OCI into Income (Effective Portion) Three Months Ended September 30, Nine Months Ended September 30, Location of Gain (Loss) 2016 2015 2016 2015 Revenues $ 8.1 $ 24.5 $ 50.6 $ 59.3 Our consolidated earnings are also affected by the use of the mark-to-market method of accounting for derivative instruments that do not qualify for hedge accounting or that have not been designated as hedges. The changes in fair value of these instruments are recorded on the balance sheet and through earnings rather than being deferred until the anticipated transaction settles. The use of mark-to-market accounting for financial instruments can cause non-cash earnings volatility due to changes in the underlying commodity price indices. Location of Gain Gain (Loss) Recognized in Income on Derivatives Derivatives Not Designated Recognized in Income on Three Months Ended September 30, Nine Months Ended September 30, as Hedging Instruments Derivatives 2016 2015 2016 2015 Commodity contracts Revenue $ (0.3 ) $ (4.0 ) $ 1.3 $ (0.9 ) The following table shows the deferred gains (losses) included in accumulated OCI, which will be reclassified into earnings before income taxes through the end of 2019 based on valuations as of the balance sheet date: September 30, 2016 December 31, 2015 Commodity hedges, before tax (1) $ 9.2 $ 86.7 (1) Includes deferred net gains of $3.2 million as of September 30, 2016 related to contracts that will be settled and reclassified to revenue over the next 12 months. See Note 16 – Fair Value Measurements for additional disclosures related to derivative instruments and hedging activities. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 16 — Fair Value Measurements Under GAAP, our Consolidated Balance Sheets reflect a mixture of measurement methods for financial assets and liabilities (“financial instruments”). Derivative financial instruments and contingent consideration related to business acquisitions are reported at fair value in our Consolidated Balance Sheets. Other financial instruments are reported at historical cost or amortized cost in our Consolidated Balance Sheets. The following are additional qualitative and quantitative disclosures regarding fair value measurements of financial instruments. Fair Value of Derivative Financial Instruments Our derivative instruments consist of financially settled commodity swaps, futures, option contracts and fixed-price forward commodity contracts with certain counterparties. We determine the fair value of our derivative contracts using present value methods or standard option valuation models with assumptions about commodity prices based on those observed in underlying markets. We have consistently applied these valuation techniques in all periods presented and we believe we have obtained the most accurate information available for the types of derivative contracts we hold. The fair values of our derivative instruments are sensitive to changes in forward pricing on natural gas, NGLs and crude oil. The financial position of these derivatives at September 30, 2016, a net asset position of $16.6 million, reflects the present value, adjusted for counterparty credit risk, of the amount we expect to receive or pay in the future on our derivative contracts. If forward pricing on natural gas, NGLs and crude oil were to increase by 10%, the result would be a fair value reflecting a net liability of $27.7 million, ignoring an adjustment for counterparty credit risk. If forward pricing on natural gas, NGLs and crude oil were to decrease by 10%, the result would be a fair value reflecting a net asset of $61.4 million, ignoring an adjustment for counterparty credit risk. Fair Value of Other Financial Instruments Due to their cash or near-cash nature, the carrying value of other financial instruments included in working capital (i.e., cash and cash equivalents, accounts receivable, accounts payable) approximates their fair value. Long-term debt is primarily the other financial instrument for which carrying value could vary significantly from fair value. We determined the supplemental fair value disclosures for our long-term debt as follows: • The TRC Revolver, TRP Revolver, and the Partnership’s accounts receivable securitization facility are based on carrying value, which approximates fair value as their interest rates are based on prevailing market rates; and • Our term loan and the Partnership’s senior unsecured notes are based on quoted market prices derived from trades of the debt. We have a contingent consideration liability for APL’s previous acquisition of a gas gathering system and related assets, which is carried at fair value (see Note 4 – Business Acquisitions). Fair Value Hierarchy We categorize the inputs to the fair value measurements of financial assets and liabilities at each balance sheet reporting date using a three-tier fair value hierarchy that prioritizes the significant inputs used in measuring fair value: • Level 1 – observable inputs such as quoted prices in active markets; • Level 2 – inputs other than quoted prices in active markets that we can directly or indirectly observe to the extent that the markets are liquid for the relevant settlement periods; and • Level 3 – unobservable inputs in which little or no market data exists, therefore we must develop our own assumptions. The following table shows a breakdown by fair value hierarchy category for (1) financial instruments measurements included in our Consolidated Balance Sheets at fair value and (2) supplemental fair value disclosures for other financial instruments: September 30, 2016 Carrying Fair Value Value Total Level 1 Level 2 Level 3 Financial Instruments Recorded on Our Consolidated Balance Sheets at Fair Value: Assets from commodity derivative contracts (1) $ 46.3 $ 46.3 $ — $ 44.0 $ 2.3 Liabilities from commodity derivative contracts (1) 29.7 29.7 — 27.3 2.4 TPL contingent consideration (2) 2.7 2.7 — — 2.7 Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value: Cash and cash equivalents 141.1 141.1 — — — TRC Revolver 275.0 275.0 — 275.0 — TRC term loan 157.7 160.3 — 160.3 — TRP Revolver — — — — — Partnership's Senior unsecured notes 4,326.5 4,447.8 — 4,447.8 — Partnership's accounts receivable securitization facility 225.0 225.0 — 225.0 — December 31, 2015 Carrying Fair Value Value Total Level 1 Level 2 Level 3 Financial Instruments Recorded on Our Consolidated Balance Sheets at Fair Value: Assets from commodity derivative contracts (1) $ 127.1 $ 127.1 $ — $ 123.1 $ 4.0 Liabilities from commodity derivative contracts (1) 7.6 7.6 — 7.3 0.3 TPL contingent consideration (2) 3.0 3.0 — — 3.0 Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value: Cash and cash equivalents 140.2 140.2 — — — TRC Revolver 440.0 440.0 — 440.0 — TRC term loan 157.5 158.3 — 158.3 — TRP Revolver 280.0 280.0 — 280.0 — Partnership's Senior unsecured notes 4,884.0 4,192.0 — 4,192.0 — Partnership's accounts receivable securitization facility 219.3 219.3 — 219.3 — (1) The fair value of derivative contracts in this table is presented on a different basis than the Consolidated Balance Sheets presentation as disclosed in Note 15 – Derivative Instruments and Hedging Activities. The above fair values reflect the total value of each derivative contract taken as a whole, whereas the Consolidated Balance Sheets presentation is based on the individual maturity dates of estimated future settlements. As such, an individual contract could have both an asset and liability position when segregated into its current and long-term portions for Consolidated Balance Sheets classification purposes. (2) See Note 4 – Business Acquisitions. Additional Information Regarding Level 3 Fair Value Measurements Included in Our Consolidated Balance Sheets We reported certain of our swaps and option contracts at fair value using Level 3 inputs due to such derivatives not having observable implied volatilities or market prices for substantially the full term of the derivative asset or liability. For valuations that include both observable and unobservable inputs, if the unobservable input is determined to be significant to the overall inputs, the entire valuation is categorized in Level 3. This includes derivatives valued using indicative price quotations whose contract length extends into unobservable periods. The fair value of these swaps is determined using a discounted cash flow valuation technique based on a forward commodity basis curve. For these derivatives, the primary input to the valuation model is the forward commodity basis curve, which is based on observable or public data sources and extrapolated when observable prices are not available. As of September 30, 2016, we had 21 commodity swap and option contracts categorized as Level 3. The significant unobservable inputs used in the fair value measurements of our Level 3 derivatives are (i) the forward natural gas liquids pricing curves, for which a significant portion of the derivative’s term is beyond available forward pricing and (ii) implied volatilities, which are unobservable as a result of inactive natural gas liquids options trading. The change in the fair value of Level 3 derivatives associated with a 10% change in the forward basis curve where prices are not observable is immaterial. The fair value of the contingent consideration was determined using a probability-based model measuring the likelihood of meeting certain volumetric measures. These probability-based inputs are not observable; therefore, the entire valuation of the contingent consideration is categorized in Level 3. Changes in the fair value of this liability are included in Other Income on the Consolidated Statements of Operations. The following table summarizes the changes in fair value of our financial instruments classified as Level 3 in the fair value hierarchy: Commodity Derivative Contracts Contingent Asset/(Liability) Liability Balance, December 31, 2015 $ 3.7 $ (3.0 ) Change in fair value of TPL contingent consideration - 0.3 New Level 3 instruments 1.0 - Settlements included in Revenue (1.0 ) - Unrealized gain/(loss) included in OCI (3.8 ) - Balance, September 30, 2016 $ (0.1 ) $ (2.7 ) For the nine months ended September 30, 2016, we had no transfers of financial instruments out of Level 3 and into Level 2. Historically, transfers relate to long-term over-the-counter swaps for natural gas and NGL products with deliveries for which observable market prices were available. |
Contingencies
Contingencies | 9 Months Ended |
Sep. 30, 2016 | |
Loss Contingency [Abstract] | |
Contingencies | Note 17 – Contingencies Legal Proceedings Litigation related to TRC/TRP Merger On December 16, 2015, two purported unitholders of TRP (the “State Court Plaintiffs”) filed a putative class action and derivative lawsuit challenging the TRC/TRP Merger against TRC, TRP (as a nominal defendant), Targa Resources GP LLC (“TRP GP”), the members of the board of TRP GP (the “TRP GP Board”) and Merger Sub (collectively, the “State Court Defendants”). This lawsuit is styled Leslie Blumberg et al. v. TRC Resources Corp., et al. th The State Court Plaintiffs allege several causes of action challenging the TRC/TRP Merger. Generally, the State Court Plaintiffs allege that (i) the members of the TRP GP Board breached express and/or implied duties under the Partnership Agreement and (ii) TRC, TRP GP, and Merger Sub aided and abetted in these alleged breaches of duties. The State Court Plaintiffs further allege, in general, that (a) the premium offered to TRP’s unitholders was inadequate, (b) the TRC/TRP Merger did not include a collar to protect TRP unitholders from decreases in TRC’s stock price, (c) the TRP GP Board agreed to contractual terms that allegedly may have dissuaded other potential acquirers from seeking to acquire TRP (including the “no-solicitation,” “matching rights,” and “termination fee” provisions), (d) the process leading up to the TRC/TRP Merger was unfair, (e) the TRP GP Board had conflicts of interest due to TRC’s control of TRP GP, (f) the TRP GP Conflicts Committee’s financial advisor was conflicted and conducted flawed analyses, and (g) the joint proxy statement/prospectus filed in connection with the TRC/TRP Merger (the “Proxy”) failed to disclose allegedly material information concerning, among other things, (i) the TRC and TRP projections included in the Proxy, and (ii) the analyses conducted by the TRP GP Conflicts Committee’s financial advisor in connection with the TRC/TRP Merger. Based on these allegations, the State Court Plaintiffs seek damages and attorneys’ fees. On February 26 and 29, 2016, the State Court Defendants filed general denials and asserted affirmative defenses. On August 26, 2016, the State Court Defendants filed Special Exceptions and a Motion for Summary Judgment seeking to have the State Court Lawsuit dismissed in its entirety with prejudice. The Special Exceptions and Motion for Summary Judgment are pending before the Court. The State Court Defendants cannot predict the outcome of this or any other lawsuits that might be filed subsequent to the date of the filing of this report, nor can the State Court Defendants predict the amount of time and expense that will be required to resolve such litigation. The State Court Defendants believe the State Court Lawsuit is without merit and intend to defend vigorously against this lawsuit and any other actions that challenge the TRC/TRP Merger. Environmental Proceedings On June 18, 2015, the New Mexico Environment Department’s Air Quality Bureau issued a Notice of Violation to Targa Midstream Services LLC for alleged violations of air emissions regulations related to emissions events that occurred at the Monument Gas Plant between June 2014 and December 2014. The Monument Gas Plant is owned and operated by Versado Gas Processors, L.L.C., which was a joint venture in which we owned a 63% interest and Targa Midstream Services LLC served as operator until October 31, 2016, when we acquired the remaining 37% membership interest from Chevron U.S.A. Inc. The Partnership is in discussions with the New Mexico Environment Department to resolve the alleged violations. The Partnership anticipates that this matter could result in a monetary sanction in excess of $100,000 but less than $300,000. We and the Partnership are also parties to various legal, administrative and regulatory proceedings that have arisen in the ordinary course of our business. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 9 Months Ended |
Sep. 30, 2016 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | Note 18 - Supplemental Cash Flow Information Nine Months Ended September 30, 2016 2015 Cash: Interest paid, net of capitalized interest (1) $ 211.2 $ 163.4 Income taxes paid, net of refunds 1.2 13.3 Non-cash investing activities: Deadstock commodity inventory transferred to property, plant and equipment $ 16.9 $ 1.2 Impact of capital expenditure accruals on property, plant and equipment (0.4 ) (57.2 ) Transfers from materials and supplies inventory to property, plant and equipment 1.9 2.9 Change in ARO liability and property, plant and equipment due to revised cash flow estimate (9.1 ) 3.8 Non-cash financing activities: Reduction of Owner's Equity related to accrued dividends on unvested equity awards under share compensation arrangements $ 6.8 $ 0.3 Debt additions and retirements related to exchange of TRP 6 ⅝ — 342.1 Allocation of Series A Preferred Stock net book value of BCF to additional paid-in capital 614.4 — Accrued dividends of Series A Preferred Stock 22.9 — Accrued deemed dividends of Series A Preferred Stock 12.3 — Transfer within additional paid-in capital for exercise of Warrants 53.2 — Non-cash balance sheet movements related to the TRC/TRP Merger (see Note 2 - Basis of Presentation): Prepaid transaction costs reclassified in additional paid-in capital $ 4.5 $ — Issuance of common stock 0.1 — Additional paid-in capital 3,120.0 — Accumulated other comprehensive income 55.7 — Noncontrolling interests (4,119.7 ) — Deferred tax liability 943.9 — Non-cash balance sheet movements related to the Atlas Merger (see Note 4 - Business Acquisitions): Non-cash merger consideration - common units and replacement equity awards $ — $ 2,436.1 Non-cash merger consideration - common shares and replacement equity awards — 1,013.7 Net non-cash balance sheet movements excluded from consolidated statements of cash flows — 3,449.8 Net cash merger consideration included in investing activities — 1,574.4 Total fair value of consideration transferred $ — $ 5,024.2 (1) Interest capitalized on major projects was $7.2 million and $9.1 million for the nine months ended September 30, 2016 and 2015. |
Compensation Plans
Compensation Plans | 9 Months Ended |
Sep. 30, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Compensation Plans | Note 19 – Compensation Plans Long Term Incentive Plan In connection with the TRC/TRP Merger, as of February 17, 2016, we assumed, adopted, and amended the Targa Resources Partners Long-Term Incentive Plan (“TRP LTIP”), and changed the name of the plan to the Targa Resources Corp. Equity Compensation Plan (as assumed, adopted and amended, the “Plan”), and we assumed all Partnership obligations associated with the Plan existing prior to its assumption and adoption by us. The only outstanding awards under the Plan at the time of the TRC/TRP Merger and immediately prior to the assumption and adoption of the Plan were performance units and certain phantom units of the Partnership. All such outstanding awards were converted at the effective time of the TRC/TRP Merger into comparable time-based restricted stock unit awards based on our common stock, which were assumed and adopted by us and continue to be outstanding and governed by the Plan. On March 2, 2016, we filed a Registration Statement S-8 to register 800,000 shares of common stock issuable under the Plan. On May 26, 2016, we filed a Registration Statement S-8 to register an additional 300,000 shares of common stock issuable under the Plan. The TRC/TRP Merger did not trigger the acceleration of any time-based vesting of any of the Partnership’s outstanding long-term equity incentive compensation awards under the TRP LTIP. All outstanding performance unit awards previously granted under the TRP LTIP were converted and restated into comparable awards based on Targa’s common shares. Specifically, each outstanding performance unit award was converted and restated, effective as of the effective time of the TRC/TRP Merger, into an award to acquire, pursuant to the same time-based vesting schedule and forfeiture and termination provisions, a comparable number of Targa common shares determined by multiplying the number of performance units subject to each award by the exchange ratio in the TRC/TRP Merger (0.62), rounded down to the nearest whole share, and the performance factor was eliminated. All amounts previously credited as distribution equivalent rights under any outstanding performance unit award continue to remain so credited and will be payable on the payment date set forth in the applicable award agreement, subject to the same time-based vesting schedule previously included in the performance unit award, but without application of any performance factor. Cash-Settled Performance Units Targa Resources Long-Term Incentive Plan Equity-Settled Performance Units Replacement Phantom Units 2015 2014 2013 Before conversion 675,745 349,451 192,390 119,900 139,700 After conversion 418,903 216,561 119,178 74,248 86,538 The February 17, 2016 conversion of equity-settled performance units and replacement phantom units outstanding to equity-settled performance shares and replacement phantom shares was considered modification of awards under ASC 718, Accounting for Stock-Based Compensation The February 17, 2016 conversion of outstanding cash-settled performance units to cash-settled restricted stock units was considered modification of awards under ASC 718. The incremental change in fair value between the original grant date fair value and the fair value as of February 17, 2016 resulted in recognition of additional compensation costs during the first quarter of 2016 of $4.8 million. The remaining compensation cost will be recognized in general and administrative expense over the remaining service period of each award. On March 2, 2016, the Compensation Committee granted restricted stock units awards of 331,282 shares to executive management and employees under the Plan for the 2016 compensation cycle that will cliff vest three years from the grant date. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | Note 20 — Segment Information We operate in two primary segments (previously referred to as divisions): (i) Gathering and Processing, and (ii) Logistics and Marketing (also referred to as the Downstream Business). Our reportable segments include operating segments that have been aggregated based on the nature of the products and services provided. Concurrent with the completion of the TRC/TRP Merger in the first quarter of 2016, management reevaluated our reportable segments and determined that our previously disclosed divisions are the appropriate level of aggregation for our reportable segments. The increase in activity within Field Gathering and Processing due to the Atlas mergers coupled with the decline in activity in our Gulf Coast region makes the disaggregation of Field Gathering and Processing and Coastal Gathering and Processing no longer warranted. Management also determined that further disaggregation of our Logistics and Marketing segment is no longer appropriate due to the integrated nature of the operations within our Downstream Business Our Gathering and Processing segment includes assets used in the gathering of natural gas produced from oil and gas wells and processing this raw natural gas into merchantable natural gas by extracting NGLs and removing impurities; and assets used for crude oil gathering and terminaling. The Gathering and Processing segment's assets are located in the Permian Basin of West Texas and Southeast New Mexico; the Eagle Ford Shale in South Texas; the Barnett Shale in North Texas; the Anadarko, Ardmore, and Arkoma Basins in Oklahoma and South Central Kansas; the Williston Basin in North Dakota and in the onshore and near offshore regions of the Louisiana Gulf Coast and the Gulf of Mexico. Our Logistics and Marketing segment includes all the activities necessary to convert mixed NGLs into NGL products and provides certain value added services such as storing, terminaling, distributing and marketing of NGLs, the storage and terminaling of refined petroleum products and crude oil and certain natural gas supply and marketing activities in support of our other businesses including services to LPG exporters. It also includes certain natural gas supply and marketing activities in support of our other operations, as well as transporting natural gas and NGLs. Logistics and Marketing operations are generally connected to and supplied in part by our Gathering and Processing segments and are predominantly located in Mont Belvieu and Galena Park, Texas, Lake Charles, Louisiana and Tacoma, Washington. Other contains the results (including any hedge ineffectiveness) of commodity derivative activities included in operating margin and mark-to-market gains/losses related to derivative contracts that were not designated as cash flow hedges. Elimination of inter-segment transactions are reflected in the corporate and eliminations column. Reportable segment information is shown in the following tables: Three Months Ended September 30, 2016 Gathering and Processing Logistics and Marketing Other Corporate and Eliminations Total Revenues Sales of commodities $ 172.2 $ 1,215.3 $ 11.2 $ — $ 1,398.7 Fees from midstream services 120.6 133.0 — — 253.6 292.8 1,348.3 11.2 — 1,652.3 Intersegment revenues Sales of commodities 574.8 76.3 — (651.1 ) — Fees from midstream services 1.9 6.6 — (8.5 ) — 576.7 82.9 — (659.6 ) — Revenues $ 869.5 $ 1,431.2 $ 11.2 $ (659.6 ) $ 1,652.3 Operating margin $ 149.4 $ 126.0 $ 11.2 $ — $ 286.6 Other financial information: Total assets (1) $ 10,047.3 $ 2,737.5 $ 47.2 $ 223.6 $ 13,055.6 Goodwill $ 393.0 $ — $ — $ — $ 393.0 Capital expenditures $ 97.1 $ 36.2 $ — $ 1.3 $ 134.6 (1) Corporate assets at the segment level primarily include tax-related assets, cash and prepaids. Three Months Ended September 30, 2015 Gathering and Processing Logistics and Marketing Other Corporate and Eliminations Total Revenues Sales of commodities $ 470.3 $ 829.2 $ 21.8 $ — $ 1,321.3 Fees from midstream services 117.3 193.5 — — 310.8 587.6 1,022.7 21.8 — 1,632.1 Intersegment revenues Sales of commodities 253.4 48.9 — (302.3 ) — Fees from midstream services 2.4 4.1 — (6.5 ) — 255.8 53.0 — (308.8 ) — Revenues $ 843.4 $ 1,075.7 $ 21.8 $ (308.8 ) $ 1,632.1 Operating margin $ 140.5 $ 163.8 $ 21.8 $ — $ 326.1 Other financial information: Total assets (1) $ 10,649.5 $ 2,447.3 $ 137.6 $ 139.0 $ 13,373.4 Goodwill $ 551.4 $ — $ — $ — $ 551.4 Capital expenditures $ 115.1 $ 68.4 $ — $ 2.7 $ 186.2 (1) Corporate assets at the segment level primarily include tax-related assets, cash and prepaids. Nine Months Ended September 30, 2016 Gathering and Processing Logistics and Marketing Other Corporate and Eliminations Total Revenues Sales of commodities $ 441.3 $ 3,384.7 $ 56.9 $ — $ 3,882.9 Fees from midstream services 360.9 434.6 — — 795.5 802.2 3,819.3 56.9 — 4,678.4 Intersegment revenues Sales of commodities 1,455.8 176.3 — (1,632.1 ) — Fees from midstream services 5.8 15.1 — (20.9 ) — 1,461.6 191.4 — (1,653.0 ) — Revenues $ 2,263.8 $ 4,010.7 $ 56.9 $ (1,653.0 ) $ 4,678.4 Operating margin $ 404.1 $ 424.5 $ 56.9 $ — $ 885.5 Other financial information: Total assets (1) $ 10,047.3 $ 2,737.5 $ 47.2 $ 223.6 $ 13,055.6 Goodwill $ 393.0 $ — $ — $ — $ 393.0 Capital expenditures $ 271.3 $ 151.9 $ — $ 3.3 $ 426.5 (1) Corporate assets at the segment level primarily include tax related assets, cash and prepaids. Nine Months Ended September 30, 2015 Gathering and Processing Logistics and Marketing Other Corporate and Eliminations Total Revenues Sales of commodities $ 1,177.5 $ 2,881.4 $ 60.7 $ — $ 4,119.6 Fees from midstream services 302.9 588.7 — — 891.6 1,480.4 3,470.1 60.7 — 5,011.2 Intersegment revenues Sales of commodities 802.1 152.3 — (954.4 ) — Fees from midstream services 6.3 13.7 — (20.0 ) — 808.4 166.0 — (974.4 ) — Revenues $ 2,288.8 $ 3,636.1 $ 60.7 $ (974.4 ) $ 5,011.2 Operating margin $ 372.0 $ 519.0 $ 60.7 $ (0.1 ) $ 951.6 Other financial information: Total assets (1) $ 10,649.5 $ 2,447.3 $ 137.6 $ 139.0 $ 13,373.4 Goodwill $ 551.4 $ — $ — $ — $ 551.4 Capital expenditures $ 356.6 $ 209.4 $ — $ 5.0 $ 571.0 Business acquisition $ 5,024.2 $ — $ — $ — $ 5,024.2 (1) Corporate assets at the segment level primarily include tax related assets, cash and prepaids. The following table shows our consolidated revenues by product and service for the periods presented: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Sales of commodities: Natural gas $ 465.6 $ 456.1 $ 1,102.0 $ 1,201.6 NGL 866.7 772.2 2,575.8 2,656.9 Condensate 35.0 40.4 96.2 113.1 Petroleum products 20.2 30.8 52.0 87.3 Derivative activities 11.2 21.8 56.9 60.7 1,398.7 1,321.3 3,882.9 4,119.6 Fees from midstream services: Fractionating and treating 33.2 55.7 94.8 160.1 Storage, terminaling, transportation and export 89.7 126.8 316.3 384.6 Gathering and processing 110.9 106.6 329.9 280.7 Other 19.8 21.7 54.5 66.2 253.6 310.8 795.5 891.6 Total revenues $ 1,652.3 $ 1,632.1 $ 4,678.4 $ 5,011.2 The following table shows a reconciliation of operating margin to net income (loss) for the periods presented: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Reconciliation of operating margin to net income (loss): Operating margin $ 286.6 $ 326.1 $ 885.5 $ 951.6 Depreciation and amortization expenses (184.0 ) (165.8 ) (563.6 ) (448.3 ) General and administrative expenses (46.1 ) (44.9 ) (138.3 ) (136.5 ) Goodwill impairment - - (24.0 ) - Interest expense, net (62.7 ) (67.8 ) (187.0 ) (189.5 ) Other, net (5.7 ) (2.8 ) 5.1 (42.6 ) Income tax (expense) benefit 8.7 (24.0 ) 3.9 (54.1 ) Net income (loss) $ (3.2 ) $ 20.8 $ (18.4 ) $ 80.6 |
Significant Accounting Polici28
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Accounting Policy Updates | Accounting Policy Updates The accounting policies that we follow are set forth in Note 3 – Significant Accounting Policies of the Notes to Consolidated Financial Statements in our Annual Report and our Current Report on Form 8-K filed with the SEC on May 23, 2016. There were no significant updates or revisions to our policies during the nine months ended September 30, 2016, except as noted below. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Revenue from Contracts with Customers In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606) Revenue Recognition Other Assets and Deferred Costs – Contracts with Customers With the issuance in August 2015 of ASU 2015-14 , Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing In May 2016, the FASB issued ASU 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients We expect to adopt these updates in their entirety on January 1, 2018, and are continuing to evaluate the impact on our revenue recognition practices. Consolidation In February 2015, the FASB issued ASU 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis Presentation of Debt Issuance Costs In April 2015, the FASB issued ASU 2015-03, Interest – Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs Leases In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) We expect to adopt the amendments in the first quarter of 2019 and are currently evaluating the impacts of the amendments to our consolidated financial statements and accounting practices for leases. Share-Based Compensation In March 2016, the FASB issued ASU 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting We adopted the applicable amendments in the second quarter of 2016 and have applied the guidance as of January 1, 2016. Amendments related to the timing of when excess tax benefits and deficiencies are recognized, minimum statutory withholding requirements, and forfeitures have been applied using a modified retrospective transition method but resulted in no cumulative effect adjustment to equity. The amendment related to the presentation of employee taxes paid on the statement of cash flows when an employer withholds shares to meet the minimum statutory withholding requirement had no impact as we previously classified these payments as a financing activity and continue to do so. The amendment requiring recognition of excess tax benefits and tax deficiencies in the income statement has been applied prospectively. We have elected to apply the amendment related to the presentation of excess tax benefits and deficiencies on the statement of cash flows on a prospective basis and prior periods have not been adjusted. We recognized $0.3 million and $2.6 million of excess tax deficiencies in income tax expense for the three and nine months ended September 30, 2016. Our diluted earnings per share calculation has been adjusted for the three and nine months ended September 30, 2016, to exclude windfall tax benefits in assumed proceeds under the treasury stock method. In addition, we have elected to account for forfeitures as they occur. Measurement of Credit Losses on Financial Instruments In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. Cash Flow Classification In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force) Recognition of Intra-Entity Transfers of Assets Other than Inventory In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other than Inventory |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Tax Impact on Equity | Additional Accumulated TRC's Total Common paid-in Retained other comprehensive stockholders' Noncontrolling owners' shares capital earnings income (loss) equity interests (1) equity Shares issued for the Merger $ 0.1 $ 1,803.0 $ — $ — $ 1,803.1 $ (4,119.7 ) $ (2,316.6 ) Impact of NCI acquisition on TRC owners' equity — 2,226.7 — 89.9 2,316.6 — 2,316.6 Deferred tax adjustments — (918.4 ) — (34.2 ) (952.6 ) — (952.6 ) Transaction costs, net of tax — (14.9 ) — — (14.9 ) — (14.9 ) Acquisition of TRP noncontrolling common interests $ 0.1 $ 3,096.4 $ — $ 55.7 $ 3,152.2 $ (4,119.7 ) $ (967.5 ) ______________________ 1. Reflects the February 17, 2016 book value of the publicly held interests in TRP. |
Impact of Revisions to Activity Reported in Consolidated Statements of Comprehensive Income (Loss) | The following table displays the impact of these revisions to activity reported in our Consolidated Statements of Comprehensive Income (Loss) during the three and nine months ended September 30, 2015 and the year ended December 31, 2015: Three Months Ended Nine Months Ended September 30, 2015 September 30, 2015 As Reported As Corrected As Reported As Corrected Pre-Tax Related Income Tax After Tax Pre-Tax Related Income Tax After Tax Pre-Tax Related Income Tax After Tax Pre-Tax Related Income Tax After Tax Targa Resources Corp. Commodity hedging contracts: Change in fair value $ 4.6 $ (1.7 ) $ 2.9 $ 5.5 $ (2.0 ) $ 3.5 $ 5.2 $ (2.0 ) $ 3.2 $ 7.5 $ (2.9 ) $ 4.6 Settlements reclassified to revenues (1.8 ) 0.7 (1.1 ) (2.7 ) 1.0 (1.7 ) (4.5 ) 1.7 (2.8 ) (6.8 ) 2.6 (4.2 ) Other comprehensive income (loss) attributable to Targa Resources Corp. 2.8 (1.0 ) 1.8 2.8 (1.0 ) 1.8 0.7 (0.3 ) 0.4 0.7 (0.3 ) 0.4 Noncontrolling interests Commodity hedging contracts: Change in fair value 38.3 - 38.3 45.2 - 45.2 54.2 - 54.2 70.1 - 70.1 Settlements reclassified to revenues (14.9 ) - (14.9 ) (21.8 ) - (21.8 ) (36.6 ) - (36.6 ) (52.5 ) - (52.5 ) Other comprehensive income (loss) attributable to noncontrolling interests 23.4 - 23.4 23.4 - 23.4 17.6 - 17.6 17.6 - 17.6 Total Commodity hedging contracts: Change in fair value 42.9 (1.7 ) 41.2 50.7 (2.0 ) 48.7 59.4 (2.0 ) 57.4 77.6 (2.9 ) 74.7 Settlements reclassified to revenues (16.7 ) 0.7 (16.0 ) (24.5 ) 1.0 (23.5 ) (41.1 ) 1.7 (39.4 ) (59.3 ) 2.6 (56.7 ) Other comprehensive income (loss) $ 26.2 $ (1.0 ) $ 25.2 $ 26.2 $ (1.0 ) $ 25.2 $ 18.3 $ (0.3 ) $ 18.0 $ 18.3 $ (0.3 ) $ 18.0 Year Ended December 31, 2015 As Reported As Corrected Pre-Tax Related Income Tax After Tax Pre-Tax Related Income Tax After Tax Targa Resources Corp. Commodity hedging contracts: Change in fair value $ 7.4 $ (2.8 ) $ 4.6 $ 11.0 $ (4.2 ) $ 6.8 Settlements reclassified to revenues (5.9 ) 2.2 (3.7 ) (9.5 ) 3.6 (5.9 ) Other comprehensive income (loss) attributable to Targa Resources Corp. 1.5 (0.6 ) 0.9 1.5 (0.6 ) 0.9 Noncontrolling interests Commodity hedging contracts: Change in fair value 73.8 - 73.8 101.7 - 101.7 Settlements reclassified to revenues (48.9 ) - (48.9 ) (76.8 ) - (76.8 ) Other comprehensive income (loss) attributable to noncontrolling interests 24.9 - 24.9 24.9 - 24.9 Total Commodity hedging contracts: Change in fair value 81.2 (2.8 ) 78.4 112.7 (4.2 ) 108.5 Settlements reclassified to revenues (54.8 ) 2.2 (52.6 ) (86.3 ) 3.6 (82.7 ) Other comprehensive income (loss) $ 26.4 $ (0.6 ) $ 25.8 $ 26.4 $ (0.6 ) $ 25.8 |
Business Acquisitions (Tables)
Business Acquisitions (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Business Combinations [Abstract] | |
Pro Forma Consolidated Results of Operations | The following summarized unaudited pro forma Consolidated Statement of Operations information for the nine months ended September 30, 2015 assumes that the Partnership’s acquisition of APL and our acquisition of ATLS had occurred as of January 1, 2014. We prepared the following summarized unaudited pro forma financial results for comparative purposes only. The summarized unaudited pro forma financial results may not be indicative of the results that would have occurred if we had completed these acquisitions as of January 1, 2014, or that the results that will be attained in the future. Amounts presented below are in millions. September 30, 2015 Pro Forma Revenues $ 5,299.9 Net income 62.2 |
Consideration Transferred to Acquire ATLS and APL | The following table summarizes the consideration transferred to acquire ATLS and APL: Fair Value of Consideration Transferred: Cash paid, net of cash acquired (1): TRC $ 745.7 TRP 828.7 Common shares of TRC 1,008.5 Replacement restricted stock units awarded (2) 5.2 Common units of TRP 2,421.1 Replacement phantom units awarded (2) 15.0 Total $ 5,024.2 (1) Net of cash acquired of $40.8 million. (2) The fair value of consideration transferred in the form of replacement restricted stock unit awards and replacement phantom unit awards represent the allocation of the fair value of the awards to the pre-combination service period. The fair value of the awards associated with the post-combination service period will be recognized over the remaining service period of the award. |
Fair Value Determination Related to the Atlas Mergers | Our final fair value determination related to the Atlas mergers was as follows: Fair value determination: February 27, 2015 Trade and other current receivables, net $ 181.1 Other current assets 24.4 Assets from risk management activities 102.1 Property, plant and equipment 4,616.9 Investments in unconsolidated affiliates 214.5 Intangible assets 1,354.9 Other long-term assets 5.5 Current liabilities (259.3 ) Long-term debt (1,573.3 ) Deferred income tax liabilities, net (13.6 ) Other long-term liabilities (119.1 ) Total identifiable net assets 4,534.1 Noncontrolling interest in subsidiaries (216.9 ) Goodwill 707.0 Total fair value of consideration transferred $ 5,024.2 |
Changes in Gross Amounts of Goodwill | Changes in the gross amounts of our goodwill are as follows: WestTX SouthTX SouthOK Total Balance at January 1, 2015 $ — $ — $ — $ — Acquisition, February 27, 2015 364.5 160.3 182.2 707.0 Provisional Impairment (recorded 4Q 2015) (37.6 ) (70.2 ) (182.2 ) (290.0 ) Balance at December 31, 2015 326.9 90.1 — 417.0 Additional Impairment (recorded 1Q 2016) (14.4 ) (9.6 ) — (24.0 ) Balance at September 30, 2016 $ 312.5 $ 80.5 $ — $ 393.0 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Components of Inventories | September 30, 2016 December 31, 2015 Commodities $ 139.3 $ 128.3 Materials and supplies 11.0 12.7 $ 150.3 $ 141.0 |
Property, Plant and Equipment32
Property, Plant and Equipment and Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Property Plant And Equipment And Intangible Assets [Abstract] | |
Property, Plant and Equipment and Intangible Assets | September 30, 2016 December 31, 2015 Estimated Useful Lives (In Years) Gathering systems $ 6,447.0 $ 6,304.5 5 to 20 Processing and fractionation facilities 3,312.1 2,995.2 5 to 25 Terminaling and storage facilities 1,194.5 1,115.0 5 to 25 Transportation assets 452.1 454.0 10 to 25 Other property, plant and equipment 232.2 221.1 3 to 25 Land 120.6 108.8 — Construction in progress 596.0 736.5 — Property, plant and equipment 12,354.5 11,935.1 Accumulated depreciation (2,674.3 ) (2,232.4 ) Property, plant and equipment, net $ 9,680.2 $ 9,702.7 Intangible assets $ 2,036.6 $ 2,036.6 20 Accumulated amortization (343.6 ) (226.5 ) Intangible assets, net $ 1,693.0 $ 1,810.1 |
Schedule of Changes in Intangible Assets | The changes in our intangible assets are as follows: Balance at December 31, 2015 $ 1,810.1 Amortization (117.1 ) Balance at September 30, 2016 $ 1,693.0 |
Investments in Unconsolidated33
Investments in Unconsolidated Affiliates (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Activity Related to Partnership's Investments in Unconsolidated Affiliates | The following table shows the activity related to our investments in unconsolidated affiliates: GCF T2 LaSalle T2 Eagle Ford T2 EF Cogen Total Balance at December 31, 2015 $ 49.5 $ 63.6 $ 123.8 $ 22.0 $ 258.9 Equity earnings (loss) 1.8 (3.8 ) (6.8 ) (2.6 ) (11.4 ) Cash distributions (1) (4.4 ) — — (0.8 ) (5.2 ) Cash calls for expansion projects — 0.1 4.5 — 4.6 Balance at September 30, 2016 $ 46.9 $ 59.9 $ 121.5 $ 18.6 $ 246.9 (1) Includes $3.4 million in distributions received from GCF and the T2 Joint Ventures in excess of our share of cumulative earnings for the nine months ended September 30, 2016. Such excess distributions are considered a return of capital and disclosed in cash flows from investing activities in the Consolidated Statements of Cash Flows. |
Accounts Payable and Accrued 34
Accounts Payable and Accrued Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Payables And Accruals [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities | September 30, 2016 December 31, 2015 Commodities $ 441.2 $ 385.2 Other goods and services 91.9 142.9 Interest 63.4 81.0 Compensation and benefits 28.0 16.0 Income and other taxes 49.6 13.4 Preferred dividends payable 23.9 0.9 Other 12.8 17.7 $ 710.8 $ 657.1 |
Debt Obligations (Tables)
Debt Obligations (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Debt | September 30, 2016 December 31, 2015 Current: Obligations of the Partnership: (1) Accounts receivable securitization facility, due December 2016 $ 225.0 $ 219.3 Long-term: TRC obligations: TRC Senior secured revolving credit facility, variable rate, due February 2020 (2) 275.0 440.0 TRC Senior secured term loan, variable rate, due February 2022 160.0 160.0 Unamortized discount (2.3 ) (2.5 ) Obligations of the Partnership: (1) Senior secured revolving credit facility, variable rate, due October 2017 (3) — 280.0 Senior unsecured notes: 5% fixed rate, due January 2018 733.6 1,100.0 4 ⅛ 749.4 800.0 6 ⅝ 309.9 342.1 Unamortized premium 3.9 5.0 6 ⅞ 478.6 483.6 Unamortized discount (19.3 ) (22.1 ) 6 ⅜ 278.7 300.0 5 ¼ 559.6 583.7 4¼% fixed rate, due November 2023 583.9 623.5 6¾% fixed rate, due March 2024 580.1 600.0 APL notes, 6 ⅝ 12.9 12.9 Unamortized premium 0.1 0.2 APL notes, 4¾% fixed rate, due November 2021 (4) 6.5 6.5 APL notes, 5⅞% fixed rate, due August 2023 (4) 48.1 48.1 Unamortized premium 0.5 0.5 4,759.2 5,761.5 Debt issuance costs (33.3 ) (42.7 ) Total long-term debt 4,725.9 5,718.8 Total debt $ 4,950.9 $ 5,938.1 Irrevocable standby letters of credit: Letters of credit outstanding under the TRC Senior secured credit facility (2) $ — $ — Letters of credit outstanding under the Partnership senior secured revolving credit facility (3) 13.5 12.9 $ 13.5 $ 12.9 (1) While we consolidate the debt of the Partnership in our financial statements, we do not have the obligation to make interest payments or debt payments with respect to the debt of the Partnership. (2) As of September 30, 2016, availability under TRC’s $670 million senior secured revolving credit facility (“TRC Revolver”) was $395.0 million. (3) As of September 30, 2016, availability under the Partnership’s $1.6 billion senior secured revolving credit facility (“TRP Revolver”) was $1,586.5 million. In October 2016, the TRP Revolver was amended. See “Subsequent Events – TRP Revolver Amendment.” (4) APL notes are not guaranteed by us or the Partnership. |
Range of Interest Rates and Weighted Average Interest Rate Incurred on Variable Rate Debt Obligations | The following table shows the range of interest rates and weighted average interest rate incurred on variable-rate debt obligations during the nine months ended September 30, 2016: Range of Interest Rates Incurred Weighted Average Interest Rate Incurred TRC Revolver 2.2% - 4.5% 2.4% TRC senior secured term loan (1) 5.75% 5.75% TRP Revolver 2.4% - 4.8% 2.6% Partnership's accounts receivable securitization facility 1.2% - 1.3% 1.2% (1) The TRC senior secured term loan is a Eurodollar rate loan with an interest rate of LIBOR (with a LIBOR floor of 1%) plus an applicable rate of 4.75%. |
Summary of Debt Repurchased on Open Market Portion of Outstanding Senior Notes | During the nine months ended September 30, 2016, the Partnership repurchased on the open market a portion of its outstanding senior notes (the “Senior Notes”) as follows: Debt Repurchased Book Value Payment Gain/(Loss) Write-off of Debt Issuance Costs Net Gain/(Loss) 5¼% Senior Notes $ 24.1 $ (20.1 ) $ 4.0 $ (0.2 ) $ 3.8 4¼% Senior Notes 39.5 (31.8 ) 7.7 (0.3 ) 7.4 6⅞% Senior Notes 4.8 (4.3 ) 0.5 (0.1 ) 0.4 6⅝% Senior Notes 32.6 (29.5 ) 3.1 - 3.1 6⅜% Senior Notes 21.3 (18.7 ) 2.6 (0.2 ) 2.4 6¾% Senior Notes 19.9 (17.5 ) 2.4 (0.2 ) 2.2 5% Senior Notes 366.4 (368.2 ) (1.8 ) (2.1 ) (3.9 ) 4⅛% Senior Notes 50.6 (44.2 ) 6.4 (0.4 ) 6.0 $ 559.2 $ (534.3 ) $ 24.9 $ (3.5 ) $ 21.4 |
Schedule of Contractual Maturities of Senior Notes | The following table shows the contractually scheduled maturities of the Partnership’s outstanding Senior Notes as of September 30, 2016, for five consecutive years, and in total thereafter: Scheduled Maturities of Debt Total Remainder of 2016 2017 2018 2019 2020 After 2020 (in millions) Partnership's Senior notes $ 4,341.3 $ - $ - $ 733.6 $ 749.4 $ 322.8 $ 2,535.5 |
Results of Tender Offers | The results of the Tender Offers, which closed in October 2016, were : Senior Notes Outstanding Note Balance Prior to Tender Offers Amount Tendered Premium Paid Accrued Interest Paid Total Tender Offer Payments Note Balance After Tender Offers 5% Senior Notes $ 733.6 $ 483.1 $ 16.9 $ 5.4 $ 505.4 $ 250.5 6⅝% Senior Notes 309.9 281.7 10.5 0.3 292.5 28.2 6⅞% Senior Notes 478.6 373.5 14.4 4.6 392.5 105.1 $ 1,522.1 $ 1,138.3 $ 41.8 $ 10.3 $ 1,190.4 $ 383.8 |
Other Long-term Liabilities (Ta
Other Long-term Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Other Liabilities Noncurrent [Abstract] | |
Schedule of Other Long-term Liabilities | Other long-term liabilities are comprised of the following obligations: September 30, 2016 December 31, 2015 Asset retirement obligations $ 64.8 $ 70.4 Mandatorily redeemable preferred interests 64.2 82.9 Deferred revenue and other 30.1 26.9 Total long-term liabilities $ 159.1 $ 180.2 |
Changes in Aggregate Asset Retirement Obligations | The changes in our ARO are as follows: Balance at December 31, 2015 $ 70.4 Change in cash flow estimate (9.1 ) Accretion expense 3.5 Balance at September 30, 2016 $ 64.8 |
Schedule of Changes in Long-term Liabilities Attributable to Mandatorily Redeemable Preferred Interests | The following table shows the changes attributable to mandatorily redeemable preferred interests: Balance at December 31, 2015 $ 82.9 Income attributable to mandatorily redeemable preferred interests 0.1 Change in estimated redemption value included in interest expense (18.8 ) Balance at September 30, 2016 $ 64.2 |
Preferred Stock (Tables)
Preferred Stock (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Equity [Abstract] | |
Accounting for Series A preferred stock | The following table summarizes the accounting upon issuance of our Series A Preferred: Allocation of Proceeds Additional Paid-in Capital Series A Preferred Stock Series A Warrants Series B Warrants Beneficial Conversion Feature (BCF) Gross proceeds $ 994.1 Transaction fees (23.8 ) Net Proceeds- Initial Relative Fair Value Allocation $ 970.3 $ 787.9 $ 135.8 $ 46.6 $ — Allocation to BCF (614.4 ) — — 614.4 Per balance sheet upon issuance $ 173.5 $ 135.8 $ 46.6 $ 614.4 |
Common Stock and Related Matt38
Common Stock and Related Matters (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Class Of Stock Disclosures [Abstract] | |
Activity Related to Detachable Warrants Issued as Part of Series A Preferred Offering | The following table sets forth the activity related to detachable Warrants issued as part of our Series A Preferred offering: Shares of Series A Warrants Series B Warrants Common Stock Issued Cash Settled December 31, 2015 — — Issued and exercisable to common stock 13,550,004 6,533,727 Exercised (3,950,856 ) (1,905,078 ) 3,185,623 $ — September 30, 2016 9,599,148 4,628,649 |
Dividends Declared and/or Paid | The following table details the dividends declared and/or paid by us to common shareholders for the nine months ended September 30, 2016: Three Months Ended Date Paid or To Be Paid Total Common Dividends Declared Amount of Common Dividends Paid or To Be Paid Accrued Dividends (1) Dividend Declared per Share of Common Stock (In millions, except per share amounts) September 30, 2016 November 15, 2016 $ 166.4 $ 164.6 $ 1.8 $ 0.91000 June 30, 2016 August 15, 2016 153.1 151.6 1.5 0.91000 March 31, 2016 May 16, 2016 147.8 146.1 1.7 0.91000 December 31, 2015 February 9, 2016 51.7 51.0 0.7 0.91000 (1) Represents accrued dividends on restricted stock and restricted stock units that are payable upon vesting. |
Earnings per Common Share (Tabl
Earnings per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Reconciliation of Net Income and Weighted Average Shares Outstanding Used in Computing Basic and Diluted Net Income Per Common Share | The following table sets forth a reconciliation of net income and weighted average shares outstanding (in millions) used in computing basic and diluted net income per common share: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Net income $ (3.2 ) $ 20.8 $ (18.4 ) $ 80.6 Less: Net income attributable to noncontrolling interests 7.5 8.1 18.2 49.2 Less: Dividends on preferred stock 28.7 — 62.0 — Net income attributable to common shareholders for basic earnings per share $ (39.4 ) $ 12.7 $ (98.6 ) $ 31.4 Weighted average shares outstanding - basic 168.0 56.0 145.5 52.6 Net income available per common share - basic $ (0.23 ) $ 0.23 $ (0.68 ) $ 0.60 Weighted average shares outstanding 168.0 56.0 145.5 52.6 Dilutive effect of unvested stock awards — 0.1 — 0.1 Weighted average shares outstanding - diluted 168.0 56.1 145.5 52.7 Net income available per common share - diluted $ (0.23 ) $ 0.23 $ (0.68 ) $ 0.60 |
Summary of Potential Common Stock Equivalents Excluded from Determination of Diluted Earnings Per Share | The following potential common stock equivalents are excluded from the determination of diluted earnings per share because the inclusion of such shares would have been anti-dilutive (in millions on a weighted-average basis): Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Unvested restricted stock awards 0.8 — 0.5 — Warrants to purchase common stock 8.9 — 6.1 — Series A Preferred Stock 46.5 — 33.7 — |
Derivative Instruments and He40
Derivative Instruments and Hedging Activities (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Notional Volume of Commodity Hedges | At September 30, 2016, the notional volumes of our commodity derivative contracts were: Commodity Instrument Unit 2016 2017 2018 2019 Natural Gas Swaps MMBtu/d 134,436 92,448 68,800 29,683 Natural Gas Basis Swaps MMBtu/d 95,979 58,026 - - Natural Gas Options MMBtu/d 22,900 22,900 9,486 - NGL Swaps Bbl/d 5,073 3,875 2,678 1,779 NGL Futures Bbl/d 85,887 50,889 5,000 - NGL Options Bbl/d 920 1,468 1,676 - Condensate Swaps Bbl/d 2,770 1,850 1,350 223 Condensate Options Bbl/d 790 1,380 691 590 |
Fair Values of Derivative Instruments | The following schedules reflect the fair values of our derivative instruments and their location in our Consolidated Balance Sheets as well as pro forma reporting assuming that we reported derivatives subject to master netting agreements on a net basis: Fair Value as of September 30, 2016 Fair Value as of December 31, 2015 Balance Sheet Derivative Derivative Derivative Derivative Location Assets Liabilities Assets Liabilities Derivatives designated as hedging instruments Commodity contracts Current $ 34.7 $ 12.8 $ 92.1 $ 2.1 Long-term 12.4 17.6 34.9 2.4 Total derivatives designated as hedging instruments $ 47.1 $ 30.4 $ 127.0 $ 4.5 Derivatives not designated as hedging instruments Commodity contracts Current $ 0.1 $ 0.2 $ 0.1 $ 3.1 Total derivatives not designated as hedging instruments $ 0.1 $ 0.2 $ 0.1 $ 3.1 Total current position $ 34.8 $ 13.0 $ 92.2 $ 5.2 Total long-term position 12.4 17.6 34.9 2.4 Total derivatives $ 47.2 $ 30.6 $ 127.1 $ 7.6 |
Pro Forma Impact of Derivatives Net in Consolidated Balance Sheet | The pro forma impact of reporting derivatives in our Consolidated Balance Sheets on a net basis is as follows: Gross Presentation Pro forma net presentation September 30, 2016 Asset Liability Asset Liability Current Position Counterparties with offsetting positions $ 34.1 $ 12.1 $ 22.0 $ - Counterparties without offsetting positions - assets 0.7 - 0.7 - Counterparties without offsetting positions - liabilities - 0.9 - 0.9 34.8 13.0 22.7 0.9 Long Term Position Counterparties with offsetting positions 12.4 14.6 - 2.2 Counterparties without offsetting positions - assets - - - - Counterparties without offsetting positions - liabilities - 3.0 - 3.0 12.4 17.6 - 5.2 Total Derivatives Counterparties with offsetting positions 46.5 26.7 22.0 2.2 Counterparties without offsetting positions - assets 0.7 - 0.7 - Counterparties without offsetting positions - liabilities - 3.9 - 3.9 $ 47.2 $ 30.6 $ 22.7 $ 6.1 Gross Presentation Pro forma net presentation December 31, 2015 Asset Liability Asset Liability Current Position Counterparties with offsetting positions $ 86.9 $ 5.2 $ 81.7 $ - Counterparties without offsetting positions - assets 5.3 - 5.3 - Counterparties without offsetting positions - liabilities - - - - 92.2 5.2 87.0 - Long Term Position Counterparties with offsetting positions 34.2 2.4 31.8 - Counterparties without offsetting positions - assets 0.7 - 0.7 - Counterparties without offsetting positions - liabilities - - - - 34.9 2.4 32.5 - Total Derivatives Counterparties with offsetting positions 121.1 7.6 113.5 - Counterparties without offsetting positions - assets 6.0 - 6.0 - Counterparties without offsetting positions - liabilities - - - - $ 127.1 $ 7.6 $ 119.5 $ - |
Amounts Recorded in OCI and Amounts Reclassified from OCI to Revenue and Expense | The following tables reflect amounts recorded in Other Comprehensive Income (“OCI”) and amounts reclassified from OCI to revenue and expense for the periods indicated: Gain (Loss) Recognized in OCI on Derivatives (Effective Portion) Derivatives in Cash Flow Three Months Ended September 30, Nine Months Ended September 30, Hedging Relationships 2016 2015 2016 2015 Commodity contracts $ 12.9 $ 50.7 $ (40.5 ) $ 77.6 Gain (Loss) Reclassified from OCI into Income (Effective Portion) Three Months Ended September 30, Nine Months Ended September 30, Location of Gain (Loss) 2016 2015 2016 2015 Revenues $ 8.1 $ 24.5 $ 50.6 $ 59.3 |
Gain (Loss) Recognized in Income on Derivatives | The use of mark-to-market accounting for financial instruments can cause non-cash earnings volatility due to changes in the underlying commodity price indices. Location of Gain Gain (Loss) Recognized in Income on Derivatives Derivatives Not Designated Recognized in Income on Three Months Ended September 30, Nine Months Ended September 30, as Hedging Instruments Derivatives 2016 2015 2016 2015 Commodity contracts Revenue $ (0.3 ) $ (4.0 ) $ 1.3 $ (0.9 ) |
Deferred Gains (Losses) Included in Accumulated OCI | The following table shows the deferred gains (losses) included in accumulated OCI, which will be reclassified into earnings before income taxes through the end of 2019 based on valuations as of the balance sheet date: September 30, 2016 December 31, 2015 Commodity hedges, before tax (1) $ 9.2 $ 86.7 (1) Includes deferred net gains of $3.2 million as of September 30, 2016 related to contracts that will be settled and reclassified to revenue over the next 12 months. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Breakdown by Fair Value Hierarchy Category for Financial Instruments Included in Consolidated Balance Sheets | The following table shows a breakdown by fair value hierarchy category for (1) financial instruments measurements included in our Consolidated Balance Sheets at fair value and (2) supplemental fair value disclosures for other financial instruments: September 30, 2016 Carrying Fair Value Value Total Level 1 Level 2 Level 3 Financial Instruments Recorded on Our Consolidated Balance Sheets at Fair Value: Assets from commodity derivative contracts (1) $ 46.3 $ 46.3 $ — $ 44.0 $ 2.3 Liabilities from commodity derivative contracts (1) 29.7 29.7 — 27.3 2.4 TPL contingent consideration (2) 2.7 2.7 — — 2.7 Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value: Cash and cash equivalents 141.1 141.1 — — — TRC Revolver 275.0 275.0 — 275.0 — TRC term loan 157.7 160.3 — 160.3 — TRP Revolver — — — — — Partnership's Senior unsecured notes 4,326.5 4,447.8 — 4,447.8 — Partnership's accounts receivable securitization facility 225.0 225.0 — 225.0 — December 31, 2015 Carrying Fair Value Value Total Level 1 Level 2 Level 3 Financial Instruments Recorded on Our Consolidated Balance Sheets at Fair Value: Assets from commodity derivative contracts (1) $ 127.1 $ 127.1 $ — $ 123.1 $ 4.0 Liabilities from commodity derivative contracts (1) 7.6 7.6 — 7.3 0.3 TPL contingent consideration (2) 3.0 3.0 — — 3.0 Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value: Cash and cash equivalents 140.2 140.2 — — — TRC Revolver 440.0 440.0 — 440.0 — TRC term loan 157.5 158.3 — 158.3 — TRP Revolver 280.0 280.0 — 280.0 — Partnership's Senior unsecured notes 4,884.0 4,192.0 — 4,192.0 — Partnership's accounts receivable securitization facility 219.3 219.3 — 219.3 — (1) The fair value of derivative contracts in this table is presented on a different basis than the Consolidated Balance Sheets presentation as disclosed in Note 15 – Derivative Instruments and Hedging Activities. The above fair values reflect the total value of each derivative contract taken as a whole, whereas the Consolidated Balance Sheets presentation is based on the individual maturity dates of estimated future settlements. As such, an individual contract could have both an asset and liability position when segregated into its current and long-term portions for Consolidated Balance Sheets classification purposes. (2) See Note 4 – Business Acquisitions. |
Reconciliation of Changes in Fair Value of Financial Instruments Classified as Level 3 | The following table summarizes the changes in fair value of our financial instruments classified as Level 3 in the fair value hierarchy: Commodity Derivative Contracts Contingent Asset/(Liability) Liability Balance, December 31, 2015 $ 3.7 $ (3.0 ) Change in fair value of TPL contingent consideration - 0.3 New Level 3 instruments 1.0 - Settlements included in Revenue (1.0 ) - Unrealized gain/(loss) included in OCI (3.8 ) - Balance, September 30, 2016 $ (0.1 ) $ (2.7 ) |
Supplemental Cash Flow Inform42
Supplemental Cash Flow Information (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | Nine Months Ended September 30, 2016 2015 Cash: Interest paid, net of capitalized interest (1) $ 211.2 $ 163.4 Income taxes paid, net of refunds 1.2 13.3 Non-cash investing activities: Deadstock commodity inventory transferred to property, plant and equipment $ 16.9 $ 1.2 Impact of capital expenditure accruals on property, plant and equipment (0.4 ) (57.2 ) Transfers from materials and supplies inventory to property, plant and equipment 1.9 2.9 Change in ARO liability and property, plant and equipment due to revised cash flow estimate (9.1 ) 3.8 Non-cash financing activities: Reduction of Owner's Equity related to accrued dividends on unvested equity awards under share compensation arrangements $ 6.8 $ 0.3 Debt additions and retirements related to exchange of TRP 6 ⅝ — 342.1 Allocation of Series A Preferred Stock net book value of BCF to additional paid-in capital 614.4 — Accrued dividends of Series A Preferred Stock 22.9 — Accrued deemed dividends of Series A Preferred Stock 12.3 — Transfer within additional paid-in capital for exercise of Warrants 53.2 — Non-cash balance sheet movements related to the TRC/TRP Merger (see Note 2 - Basis of Presentation): Prepaid transaction costs reclassified in additional paid-in capital $ 4.5 $ — Issuance of common stock 0.1 — Additional paid-in capital 3,120.0 — Accumulated other comprehensive income 55.7 — Noncontrolling interests (4,119.7 ) — Deferred tax liability 943.9 — Non-cash balance sheet movements related to the Atlas Merger (see Note 4 - Business Acquisitions): Non-cash merger consideration - common units and replacement equity awards $ — $ 2,436.1 Non-cash merger consideration - common shares and replacement equity awards — 1,013.7 Net non-cash balance sheet movements excluded from consolidated statements of cash flows — 3,449.8 Net cash merger consideration included in investing activities — 1,574.4 Total fair value of consideration transferred $ — $ 5,024.2 (1) Interest capitalized on major projects was $7.2 million and $9.1 million for the nine months ended September 30, 2016 and 2015. |
Compensation Plans (Tables)
Compensation Plans (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Long Term Incentive Plan | Cash-Settled Performance Units Targa Resources Long-Term Incentive Plan Equity-Settled Performance Units Replacement Phantom Units 2015 2014 2013 Before conversion 675,745 349,451 192,390 119,900 139,700 After conversion 418,903 216,561 119,178 74,248 86,538 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Reportable Segment Information | Reportable segment information is shown in the following tables: Three Months Ended September 30, 2016 Gathering and Processing Logistics and Marketing Other Corporate and Eliminations Total Revenues Sales of commodities $ 172.2 $ 1,215.3 $ 11.2 $ — $ 1,398.7 Fees from midstream services 120.6 133.0 — — 253.6 292.8 1,348.3 11.2 — 1,652.3 Intersegment revenues Sales of commodities 574.8 76.3 — (651.1 ) — Fees from midstream services 1.9 6.6 — (8.5 ) — 576.7 82.9 — (659.6 ) — Revenues $ 869.5 $ 1,431.2 $ 11.2 $ (659.6 ) $ 1,652.3 Operating margin $ 149.4 $ 126.0 $ 11.2 $ — $ 286.6 Other financial information: Total assets (1) $ 10,047.3 $ 2,737.5 $ 47.2 $ 223.6 $ 13,055.6 Goodwill $ 393.0 $ — $ — $ — $ 393.0 Capital expenditures $ 97.1 $ 36.2 $ — $ 1.3 $ 134.6 (1) Corporate assets at the segment level primarily include tax-related assets, cash and prepaids. Three Months Ended September 30, 2015 Gathering and Processing Logistics and Marketing Other Corporate and Eliminations Total Revenues Sales of commodities $ 470.3 $ 829.2 $ 21.8 $ — $ 1,321.3 Fees from midstream services 117.3 193.5 — — 310.8 587.6 1,022.7 21.8 — 1,632.1 Intersegment revenues Sales of commodities 253.4 48.9 — (302.3 ) — Fees from midstream services 2.4 4.1 — (6.5 ) — 255.8 53.0 — (308.8 ) — Revenues $ 843.4 $ 1,075.7 $ 21.8 $ (308.8 ) $ 1,632.1 Operating margin $ 140.5 $ 163.8 $ 21.8 $ — $ 326.1 Other financial information: Total assets (1) $ 10,649.5 $ 2,447.3 $ 137.6 $ 139.0 $ 13,373.4 Goodwill $ 551.4 $ — $ — $ — $ 551.4 Capital expenditures $ 115.1 $ 68.4 $ — $ 2.7 $ 186.2 (1) Corporate assets at the segment level primarily include tax-related assets, cash and prepaids. Nine Months Ended September 30, 2016 Gathering and Processing Logistics and Marketing Other Corporate and Eliminations Total Revenues Sales of commodities $ 441.3 $ 3,384.7 $ 56.9 $ — $ 3,882.9 Fees from midstream services 360.9 434.6 — — 795.5 802.2 3,819.3 56.9 — 4,678.4 Intersegment revenues Sales of commodities 1,455.8 176.3 — (1,632.1 ) — Fees from midstream services 5.8 15.1 — (20.9 ) — 1,461.6 191.4 — (1,653.0 ) — Revenues $ 2,263.8 $ 4,010.7 $ 56.9 $ (1,653.0 ) $ 4,678.4 Operating margin $ 404.1 $ 424.5 $ 56.9 $ — $ 885.5 Other financial information: Total assets (1) $ 10,047.3 $ 2,737.5 $ 47.2 $ 223.6 $ 13,055.6 Goodwill $ 393.0 $ — $ — $ — $ 393.0 Capital expenditures $ 271.3 $ 151.9 $ — $ 3.3 $ 426.5 (1) Corporate assets at the segment level primarily include tax related assets, cash and prepaids. Nine Months Ended September 30, 2015 Gathering and Processing Logistics and Marketing Other Corporate and Eliminations Total Revenues Sales of commodities $ 1,177.5 $ 2,881.4 $ 60.7 $ — $ 4,119.6 Fees from midstream services 302.9 588.7 — — 891.6 1,480.4 3,470.1 60.7 — 5,011.2 Intersegment revenues Sales of commodities 802.1 152.3 — (954.4 ) — Fees from midstream services 6.3 13.7 — (20.0 ) — 808.4 166.0 — (974.4 ) — Revenues $ 2,288.8 $ 3,636.1 $ 60.7 $ (974.4 ) $ 5,011.2 Operating margin $ 372.0 $ 519.0 $ 60.7 $ (0.1 ) $ 951.6 Other financial information: Total assets (1) $ 10,649.5 $ 2,447.3 $ 137.6 $ 139.0 $ 13,373.4 Goodwill $ 551.4 $ — $ — $ — $ 551.4 Capital expenditures $ 356.6 $ 209.4 $ — $ 5.0 $ 571.0 Business acquisition $ 5,024.2 $ — $ — $ — $ 5,024.2 (1) Corporate assets at the segment level primarily include tax related assets, cash and prepaids. |
Revenues by Product and Service | The following table shows our consolidated revenues by product and service for the periods presented: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Sales of commodities: Natural gas $ 465.6 $ 456.1 $ 1,102.0 $ 1,201.6 NGL 866.7 772.2 2,575.8 2,656.9 Condensate 35.0 40.4 96.2 113.1 Petroleum products 20.2 30.8 52.0 87.3 Derivative activities 11.2 21.8 56.9 60.7 1,398.7 1,321.3 3,882.9 4,119.6 Fees from midstream services: Fractionating and treating 33.2 55.7 94.8 160.1 Storage, terminaling, transportation and export 89.7 126.8 316.3 384.6 Gathering and processing 110.9 106.6 329.9 280.7 Other 19.8 21.7 54.5 66.2 253.6 310.8 795.5 891.6 Total revenues $ 1,652.3 $ 1,632.1 $ 4,678.4 $ 5,011.2 |
Reconciliation of Operating Margin to Net Income (Loss) | The following table shows a reconciliation of operating margin to net income (loss) for the periods presented: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Reconciliation of operating margin to net income (loss): Operating margin $ 286.6 $ 326.1 $ 885.5 $ 951.6 Depreciation and amortization expenses (184.0 ) (165.8 ) (563.6 ) (448.3 ) General and administrative expenses (46.1 ) (44.9 ) (138.3 ) (136.5 ) Goodwill impairment - - (24.0 ) - Interest expense, net (62.7 ) (67.8 ) (187.0 ) (189.5 ) Other, net (5.7 ) (2.8 ) 5.1 (42.6 ) Income tax (expense) benefit 8.7 (24.0 ) 3.9 (54.1 ) Net income (loss) $ (3.2 ) $ 20.8 $ (18.4 ) $ 80.6 |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Details) $ in Millions | Feb. 17, 2016shares | Sep. 30, 2016USD ($)shares | Dec. 31, 2015shares |
Business Acquisition [Line Items] | |||
Ownership interest in Partnership by general partner | 2.00% | ||
Parent's ownership interest in the general partner of the Partnership | 100.00% | ||
Number of Partnership common units owned (in units) | 16,309,594 | ||
Ownership interest in Partnership by limited partner | 8.80% | ||
Conversion ratio in stock-for-unit transaction | 0.62 | ||
Number of shares issued in exchange of common units for common shares to the third party (in shares) | 104,525,775 | ||
Series A Cumulative Redeemable Perpetual Preferred Units [Member] | |||
Business Acquisition [Line Items] | |||
Preferred units, outstanding | 5,000,000 | ||
Preferred units dividend percentage | 9.00% | ||
Targa Resources Partners LP [Member] | |||
Business Acquisition [Line Items] | |||
Conversion ratio in stock-for-unit transaction | 0.62 | ||
Number of shares exchanged in exchange of common units for common shares to the third party (in shares) | 168,590,009 | ||
Preliminary deferred tax liability | $ | $ 950 | ||
Deferred tax liabilities computed over book basis | $ | 9,000 | ||
Deferred tax liabilities excess over tax basis | $ | $ 6,500 | ||
Tax basis statutory tax rate | 37.11% |
Tax Impact on Equity (Details)
Tax Impact on Equity (Details) - USD ($) $ in Millions | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | |||
Business Acquisition [Line Items] | ||||
Common stock issued in ATLS merger | $ (2,316.6) | $ 1,013.7 | ||
Impact of NCI acquisition on TRC owners' equity | 2,316.6 | |||
Deferred tax adjustments | (952.6) | |||
Transaction costs, net of tax | (14.9) | |||
Acquisition of TRP noncontrolling common interests | (967.5) | |||
Common Stock [Member] | ||||
Business Acquisition [Line Items] | ||||
Common stock issued in ATLS merger | 0.1 | 0.1 | ||
Acquisition of TRP noncontrolling common interests | 0.1 | |||
Additional Paid-in Capital [Member] | ||||
Business Acquisition [Line Items] | ||||
Common stock issued in ATLS merger | 1,803 | 1,013.6 | ||
Impact of NCI acquisition on TRC owners' equity | 2,226.7 | |||
Deferred tax adjustments | (918.4) | |||
Transaction costs, net of tax | (14.9) | |||
Acquisition of TRP noncontrolling common interests | 3,096.4 | |||
Retained Earnings (Accumulated Deficit) [Member] | ||||
Business Acquisition [Line Items] | ||||
Common stock issued in ATLS merger | 0 | |||
Accumulated Other Comprehensive Income (Loss) [Member] | ||||
Business Acquisition [Line Items] | ||||
Common stock issued in ATLS merger | 0 | |||
Impact of NCI acquisition on TRC owners' equity | 89.9 | |||
Deferred tax adjustments | (34.2) | |||
Acquisition of TRP noncontrolling common interests | 55.7 | |||
TRC's Stockholders' Equity [Member] | ||||
Business Acquisition [Line Items] | ||||
Common stock issued in ATLS merger | 1,803.1 | |||
Impact of NCI acquisition on TRC owners' equity | 2,316.6 | |||
Deferred tax adjustments | (952.6) | |||
Transaction costs, net of tax | (14.9) | |||
Acquisition of TRP noncontrolling common interests | 3,152.2 | |||
Noncontrolling Interests [Member] | ||||
Business Acquisition [Line Items] | ||||
Common stock issued in ATLS merger | (4,119.7) | [1] | $ 0 | |
Acquisition of TRP noncontrolling common interests | [1] | $ (4,119.7) | ||
[1] | Reflects the February 17, 2016 book value of the publicly held interests in TRP. |
Impact of Revisions to Activity
Impact of Revisions to Activity Reported in Consolidated Statements of Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income On Derivatives [Line Items] | |||||
Change in fair value, pre-tax | $ 50.7 | $ 77.6 | $ 112.7 | ||
Settlements reclassified to revenues, pre-tax | (24.5) | (59.3) | (86.3) | ||
Other comprehensive income (loss), pre-tax | $ 4.8 | 26.2 | $ (91.1) | 18.3 | 26.4 |
Commodity hedging contracts: | |||||
Change in fair value, related income tax | (2) | (2.9) | (4.2) | ||
Settlements reclassified to revenues, related income tax | 1 | 2.6 | 3.6 | ||
Other comprehensive income (loss), related income tax | (1.8) | (1) | 39.4 | (0.3) | (0.6) |
Commodity hedging contracts: | |||||
Change in fair value, after tax | 48.7 | 74.7 | 108.5 | ||
Settlements reclassified to revenues, after tax | (23.5) | (56.7) | (82.7) | ||
Other comprehensive income (loss) attributable to Targa Resources Corp., after tax | $ 3 | 25.2 | (51.7) | 18 | 25.8 |
Noncontrolling Interests [Member] | |||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income On Derivatives [Line Items] | |||||
Change in fair value, pre-tax | 45.2 | 70.1 | 101.7 | ||
Settlements reclassified to revenues, pre-tax | (21.8) | (52.5) | (76.8) | ||
Other comprehensive income (loss), pre-tax | 23.4 | 17.6 | 24.9 | ||
Commodity hedging contracts: | |||||
Change in fair value, after tax | 45.2 | 70.1 | 101.7 | ||
Settlements reclassified to revenues, after tax | (21.8) | (52.5) | (76.8) | ||
Other comprehensive income (loss) attributable to Targa Resources Corp., after tax | 23.4 | $ 12.4 | 17.6 | 24.9 | |
Targa Resources Corp. [Member] | |||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income On Derivatives [Line Items] | |||||
Change in fair value, pre-tax | 5.5 | 7.5 | 11 | ||
Settlements reclassified to revenues, pre-tax | (2.7) | (6.8) | (9.5) | ||
Other comprehensive income (loss), pre-tax | 2.8 | 0.7 | 1.5 | ||
Commodity hedging contracts: | |||||
Change in fair value, related income tax | (2) | (2.9) | (4.2) | ||
Settlements reclassified to revenues, related income tax | 1 | 2.6 | 3.6 | ||
Other comprehensive income (loss), related income tax | (1) | (0.3) | (0.6) | ||
Commodity hedging contracts: | |||||
Change in fair value, after tax | 3.5 | 4.6 | 6.8 | ||
Settlements reclassified to revenues, after tax | (1.7) | (4.2) | (5.9) | ||
Other comprehensive income (loss) attributable to Targa Resources Corp., after tax | 1.8 | 0.4 | 0.9 | ||
Scenario, Previously Reported [Member] | |||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income On Derivatives [Line Items] | |||||
Change in fair value, pre-tax | 42.9 | 59.4 | 81.2 | ||
Settlements reclassified to revenues, pre-tax | (16.7) | (41.1) | (54.8) | ||
Other comprehensive income (loss), pre-tax | 26.2 | 18.3 | 26.4 | ||
Commodity hedging contracts: | |||||
Change in fair value, related income tax | (1.7) | (2) | (2.8) | ||
Settlements reclassified to revenues, related income tax | 0.7 | 1.7 | 2.2 | ||
Other comprehensive income (loss), related income tax | (1) | (0.3) | (0.6) | ||
Commodity hedging contracts: | |||||
Change in fair value, after tax | 41.2 | 57.4 | 78.4 | ||
Settlements reclassified to revenues, after tax | (16) | (39.4) | (52.6) | ||
Other comprehensive income (loss) attributable to Targa Resources Corp., after tax | 25.2 | 18 | 25.8 | ||
Scenario, Previously Reported [Member] | Noncontrolling Interests [Member] | |||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income On Derivatives [Line Items] | |||||
Change in fair value, pre-tax | 38.3 | 54.2 | 73.8 | ||
Settlements reclassified to revenues, pre-tax | (14.9) | (36.6) | (48.9) | ||
Other comprehensive income (loss), pre-tax | 23.4 | 17.6 | 24.9 | ||
Commodity hedging contracts: | |||||
Change in fair value, after tax | 38.3 | 54.2 | 73.8 | ||
Settlements reclassified to revenues, after tax | (14.9) | (36.6) | (48.9) | ||
Other comprehensive income (loss) attributable to Targa Resources Corp., after tax | 23.4 | 17.6 | 24.9 | ||
Scenario, Previously Reported [Member] | Targa Resources Corp. [Member] | |||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income On Derivatives [Line Items] | |||||
Change in fair value, pre-tax | 4.6 | 5.2 | 7.4 | ||
Settlements reclassified to revenues, pre-tax | (1.8) | (4.5) | (5.9) | ||
Other comprehensive income (loss), pre-tax | 2.8 | 0.7 | 1.5 | ||
Commodity hedging contracts: | |||||
Change in fair value, related income tax | (1.7) | (2) | (2.8) | ||
Settlements reclassified to revenues, related income tax | 0.7 | 1.7 | 2.2 | ||
Other comprehensive income (loss), related income tax | (1) | (0.3) | (0.6) | ||
Commodity hedging contracts: | |||||
Change in fair value, after tax | 2.9 | 3.2 | 4.6 | ||
Settlements reclassified to revenues, after tax | (1.1) | (2.8) | (3.7) | ||
Other comprehensive income (loss) attributable to Targa Resources Corp., after tax | $ 1.8 | $ 0.4 | $ 0.9 |
Significant Accounting Polici48
Significant Accounting Policies (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2016 | Dec. 31, 2015 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Unamortized debt issuance costs | [1] | $ 33.3 | $ 33.3 | $ 42.7 |
Accounting Standards Update 2015-03 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Prior Period Reclassification Adjustment | 42.7 | |||
Accounting Standard Update 2016-09 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Excess tax benefit and deficiencies recognized from stock based compensation | $ 0.3 | $ 2.6 | ||
[1] | While we consolidate the debt of the Partnership in our financial statements, we do not have the obligation to make interest payments or debt payments with respect to the debt of the Partnership. |
Business Acquisitions - Additio
Business Acquisitions - Additional Information (Details) | Feb. 27, 2015USD ($)$ / sharesshares | Mar. 31, 2015USD ($) | Sep. 30, 2016USD ($)$ / shares | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($)MMcf / dmi$ / shares | Dec. 31, 2015$ / shares |
Business Acquisition [Line Items] | ||||||
Percentage of general partner's interest maintained | 2.00% | |||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | |||
Acquisition-related expenses | $ 27,300,000 | $ 27,300,000 | $ 27,300,000 | |||
Revenues from acquired business | $ 1,065,700,000 | |||||
Net income (loss) from acquired business | $ (1,000,000) | |||||
Targa Pipeline Partners LP [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Processing capacity | MMcf / d | 2,053 | |||||
Length of additional pipelines | mi | 12,220 | |||||
Atlas Energy [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Percentage of interest in common units | 100.00% | |||||
Purchase consideration | $ 1,600,000,000 | |||||
Distribution of common units/shares for each common unit (in shares) | shares | 0.1809 | |||||
Cash payment (in dollars per common unit) | $ / shares | $ 9.12 | |||||
Cash payments related to acquisition | $ 514,700,000 | |||||
Common units acquired | $ 1,000,000,000 | |||||
Closing market price of common share (in dollars per share) | $ / shares | $ 99.58 | |||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.001 | |||||
Acquisition-related expenses | $ 11,000,000 | |||||
Cash payment related to one-time cash payments and cash settlements of equity awards | 7,300,000 | |||||
Reduction in purchase price | $ (154,700,000) | |||||
Atlas Energy [Member] | Common Units [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Total distribution of common shares (in shares) | shares | 10,126,532 | |||||
Common units acquired | $ 147,400,000 | |||||
Atlas Energy [Member] | Phantom Unit Awards [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Cash payment related to one-time cash payments and cash settlements of equity awards | $ 4,500,000 | |||||
Atlas Energy [Member] | Restricted Stock Units (RSUs) [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Total distribution of common shares (in shares) | shares | 81,740 | |||||
Atlas Energy [Member] | Change Of Control Payments [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Cash payments related to acquisition | $ 149,200,000 | |||||
Atlas Energy [Member] | Equity Award Settlements [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Cash payments related to acquisition | $ 88,000,000 | |||||
Atlas Energy [Member] | Targa Resources Partners LP [Member] | Targa Pipeline Partners LP [Member] | Common Units [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Total distribution of common shares (in shares) | shares | 3,363,935 | |||||
Atlas Pipeline Partners [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Amount contributed to maintain general partner ownership percentage | $ 52,400,000 | |||||
Percentage of general partner's interest maintained | 2.00% | |||||
Atlas Pipeline Partners [Member] | Common Units [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Common units owned by parent prior to closing (in units) | shares | 5,754,253 | |||||
Atlas Pipeline Partners [Member] | Revolving Credit Facility [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Cash payments related to acquisition | $ 701,400,000 | |||||
Atlas Pipeline Partners [Member] | Phantom Unit Awards [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Cash payment representing accelerated vesting of a portion of employees APL phantom awards | $ 600,000 | |||||
Total distribution of common shares (in shares) | shares | 629,231 | |||||
Atlas Pipeline Partners [Member] | Targa Resources Partners LP [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Purchase consideration | $ 5,300,000,000 | |||||
Acquired debt and all other assumed liabilities included in purchase consideration | 1,800,000,000 | |||||
Payments for notes tendered and settled upon closing of merger | $ 1,200,000,000 | |||||
Distribution of common units/shares for each common unit (in shares) | shares | 0.5846 | |||||
Cash payment (in dollars per common unit) | $ / shares | $ 1.26 | |||||
Common units acquired | $ 2,600,000,000 | |||||
Closing market price of common share (in dollars per share) | $ / shares | $ 43.82 | |||||
Cash paid in lieu of unit issuances | $ 6,400,000 | |||||
Atlas Pipeline Partners [Member] | Targa Resources Partners LP [Member] | Class E Preferred Units [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Preferred units dividend percentage | 8.25% | |||||
Atlas Pipeline Partners [Member] | Targa Resources Partners LP [Member] | Change Of Control Payments [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Cash payments related to acquisition | $ 28,800,000 | |||||
Atlas Pipeline Partners [Member] | Targa Resources Partners LP [Member] | Common Unit Holders [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Cash payments related to acquisition | $ 128,000,000 | |||||
Total distribution of common shares (in shares) | shares | 58,614,157 | |||||
Atlas Pipeline Partners [Member] | Targa Resources Partners LP [Member] | Distribution Rights Year 1 [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Reduction in incentive distribution | $ 9,375,000 | |||||
Atlas Pipeline Partners [Member] | Targa Resources Partners LP [Member] | Distribution Rights Year 2 [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Reduction in incentive distribution | 6,250,000 | |||||
Atlas Pipeline Partners [Member] | Targa Resources Partners LP [Member] | Distribution Rights Year 3 [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Reduction in incentive distribution | 2,500,000 | |||||
Atlas Pipeline Partners [Member] | Targa Resources Partners LP [Member] | Distribution Rights Year 4 [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Reduction in incentive distribution | $ 1,250,000 |
Business Acquisitions - Pro For
Business Acquisitions - Pro Forma Impact of Atlas Mergers on Consolidated Statement of Operations (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Pro forma consolidated results of operations [Abstract] | |
Revenues | $ 5,299.9 |
Net income | $ 62.2 |
Business Acquisitions - Pro F51
Business Acquisitions - Pro Forma Impact of Atlas Mergers on Consolidated Statement of Operations (Parenthetical) (Details) - USD ($) $ in Millions | 7 Months Ended | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | |
Pro forma consolidated results of operations [Abstract] | |||
Acquisition-related expenses | $ 27.3 | $ 27.3 | $ 27.3 |
Atlas Resource Partners, LP [Member] | |||
Pro forma consolidated results of operations [Abstract] | |||
Percentage of equity interest sold | 100.00% |
Business Acquisitions - Fair Va
Business Acquisitions - Fair Value of Consideration Transferred (Details) - USD ($) $ in Millions | Feb. 27, 2015 | Sep. 30, 2015 | ||
Fair Value of Consideration Transferred [Abstract] | ||||
Cash paid, net of cash acquired | $ 745.7 | [1] | $ 1,574.4 | |
Total fair value of consideration transferred | 5,024.2 | $ 5,024.2 | ||
Replacement Restricted Stock Units (RSUs) [Member] | ||||
Fair Value of Consideration Transferred [Abstract] | ||||
Consideration transferred equity interests issued and issuable | [2] | 5.2 | ||
Replacement Phantom Units [Member] | ||||
Fair Value of Consideration Transferred [Abstract] | ||||
Consideration transferred equity interests issued and issuable | [2] | 15 | ||
Targa Resources Partners LP [Member] | ||||
Fair Value of Consideration Transferred [Abstract] | ||||
Cash paid, net of cash acquired | [1] | 828.7 | ||
Common Stock [Member] | ||||
Fair Value of Consideration Transferred [Abstract] | ||||
Consideration transferred equity interests issued and issuable | 1,008.5 | |||
Common Units [Member] | Targa Resources Partners LP [Member] | ||||
Fair Value of Consideration Transferred [Abstract] | ||||
Consideration transferred equity interests issued and issuable | $ 2,421.1 | |||
[1] | Net of cash acquired of $40.8 million. | |||
[2] | The fair value of consideration transferred in the form of replacement restricted stock unit awards and replacement phantom unit awards represent the allocation of the fair value of the awards to the pre-combination service period. The fair value of the awards associated with the post-combination service period will be recognized over the remaining service period of the award. |
Business Acquisitions - Fair 53
Business Acquisitions - Fair Value of Consideration Transferred (Parenthetical) (Details) $ in Millions | Feb. 27, 2015USD ($) |
Fair Value of Consideration Transferred [Abstract] | |
Cash acquired from acquisition | $ 40.8 |
Business Acquisitions - Fair 54
Business Acquisitions - Fair Value Determination Related to Mergers (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Feb. 27, 2015 | Dec. 31, 2014 |
Fair value determination [Abstract] | ||||||
Trade and other current receivables, net | $ 181.1 | |||||
Other current assets | 24.4 | |||||
Assets from risk management activities | 102.1 | |||||
Property, plant and equipment | 4,616.9 | |||||
Investments in unconsolidated affiliates | 214.5 | |||||
Intangible assets | 1,354.9 | |||||
Other long-term assets | 5.5 | |||||
Current liabilities | (259.3) | |||||
Long-term debt | (1,573.3) | |||||
Deferred income tax liabilities, net | (13.6) | |||||
Other long-term liabilities | (119.1) | |||||
Total identifiable net assets | 4,534.1 | |||||
Noncontrolling interest in subsidiaries | (216.9) | |||||
Goodwill | $ 393 | $ 393 | $ 417 | $ 551.4 | 707 | $ 0 |
Total fair value of consideration transferred | $ 5,024.2 | $ 5,024.2 |
Business Acquisitions - Addit55
Business Acquisitions - Additional Information Pro Forma Impact of Atlas Mergers on Consolidated Statement of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Mar. 31, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Mar. 31, 2016 | Feb. 27, 2015 | Dec. 31, 2014 | |
Measurement-period adjustments to preliminary acquisition date fair values [Abstract] | |||||||||
Depreciation and amortization expenses | $ 184 | $ 165.8 | $ 563.6 | $ 448.3 | |||||
Equity earnings (loss) | (2.2) | (1.6) | (11.4) | (1.1) | |||||
Revenues | 1,652.3 | 1,632.1 | 4,678.4 | 5,011.2 | |||||
Operating expenses | 143 | 142.7 | 414 | 409.6 | |||||
Trade receivables, fair value | $ 178.1 | ||||||||
Trade receivables, gross amount | 178.1 | ||||||||
Contractual receivables included in current receivables | 3 | ||||||||
Contractual receivables included in other long term assets | 4.5 | ||||||||
Fair value determination [Abstract] | |||||||||
Goodwill | $ 393 | $ 417 | 551.4 | $ 393 | $ 551.4 | $ 393 | $ 707 | $ 0 | |
Measurement Period Adjustments [Member] | |||||||||
Measurement-period adjustments to preliminary acquisition date fair values [Abstract] | |||||||||
Depreciation and amortization expenses | $ (1) | ||||||||
Equity earnings (loss) | $ 0.3 | ||||||||
Measurement Period Adjustments [Member] | Accounting Standards Update 2015-16 [Member] | |||||||||
Measurement-period adjustments to preliminary acquisition date fair values [Abstract] | |||||||||
Depreciation and amortization expenses | 2 | (0.1) | |||||||
Equity earnings (loss) | (0.2) | (0.1) | |||||||
Property, plant and equipment | (86.2) | 9.9 | |||||||
Investments in unconsolidated affiliates | (5.2) | 5.5 | |||||||
Intangible assets | 155.9 | (5) | |||||||
Current liabilities | 1.3 | 2.4 | |||||||
Other long-term assets | (0.1) | (1) | |||||||
Other current assets | (0.1) | (0.6) | |||||||
Goodwill | 155.6 | (6.4) | |||||||
Revenues | 0.6 | ||||||||
Operating expenses | $ (1.9) | ||||||||
Noncontrolling interest in subsidiaries, increase | 103.5 | ||||||||
Other long-term liabilities | 110.1 | ||||||||
Deferred tax liabilities, increase | 5 | ||||||||
Net decrease in Interest Expense | (26.2) | ||||||||
Reduction of General and administrative expenses | $ (0.4) |
Business Acquisitions - Addit56
Business Acquisitions - Additional Information Mandatorily Redeemable Preferred Interests (Details) $ in Millions | Sep. 30, 2016USD ($)JointVenture | Dec. 31, 2015USD ($) |
Redeemable Noncontrolling Interest [Line Items] | ||
Other long-term liabilities | $ 159.1 | $ 180.2 |
Mandatorily Redeemable Noncontrolling Interests [Member] | ||
Redeemable Noncontrolling Interest [Line Items] | ||
Number of joint ventures | JointVenture | 2 | |
Other long-term liabilities | $ 109.3 |
Business Acquisitions - Addit57
Business Acquisitions - Additional Information Contingent Consideration, Replacement Restricted Stock Units and Replacement Phantom Units (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2016 | Jun. 30, 2015 | |
Replacement Restricted Stock Units (RSUs) [Member] | ||
Business Acquisition [Line Items] | ||
Vesting period of original term | 4 years | |
Number of common units called by replacement equity unit (in shares) | 1 | |
Dividend payment period | 60 days | |
Replacement Restricted Stock Units (RSUs) [Member] | Vesting Term One [Member] | ||
Business Acquisition [Line Items] | ||
Vesting percentage original term | 25.00% | |
Replacement Restricted Stock Units (RSUs) [Member] | Vesting Term Two [Member] | ||
Business Acquisition [Line Items] | ||
Vesting percentage original term | 25.00% | |
Replacement Restricted Stock Units (RSUs) [Member] | Vesting Term Three [Member] | ||
Business Acquisition [Line Items] | ||
Vesting percentage original term | 75.00% | |
Replacement Phantom Units [Member] | ||
Business Acquisition [Line Items] | ||
Number of common units called by replacement equity unit (in shares) | 1 | |
Dividend payment period | 60 days | |
Replacement Phantom Units [Member] | Vesting Term One [Member] | ||
Business Acquisition [Line Items] | ||
Vesting percentage original term | 25.00% | |
Vesting period of original term | 4 years | |
Replacement Phantom Units [Member] | Vesting Term Two [Member] | ||
Business Acquisition [Line Items] | ||
Vesting percentage original term | 33.00% | |
Vesting period of original term | 3 years | |
Atlas Pipeline Partners [Member] | ||
Business Acquisition [Line Items] | ||
Contingent consideration additional amount | $ 6 | |
Contingent consideration liability lower range | 0 | |
Contingent consideration liability higher range | $ 6 | |
Contingent liability acquisition date fair value | $ 4.2 |
Business Acquisitions- Addition
Business Acquisitions- Additional Information Goodwill (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Sep. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | Feb. 27, 2015 | Dec. 31, 2014 | |
Business Combinations [Abstract] | |||||||||
Goodwill | $ 393 | $ 393 | $ 417 | $ 551.4 | $ 393 | $ 551.4 | $ 417 | $ 707 | $ 0 |
Goodwill impairment | $ 0 | $ 24 | $ 290 | $ 0 | $ 24 | $ 0 | $ 290 |
Business Acquisitions, Goodwill
Business Acquisitions, Goodwill (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Goodwill [Roll Forward] | |||||||
Beginning balance | $ 417 | $ 551.4 | $ 417 | $ 0 | $ 0 | ||
Acquisition, February 27, 2015 | 707 | ||||||
Provisional Impairment | $ 0 | (24) | (290) | $ 0 | (24) | 0 | (290) |
Ending balance | 393 | 393 | 417 | $ 551.4 | 393 | 551.4 | 417 |
West Texas LPG Pipeline Limited Partnership [Member] | |||||||
Goodwill [Roll Forward] | |||||||
Beginning balance | 326.9 | 326.9 | 0 | 0 | |||
Acquisition, February 27, 2015 | 364.5 | ||||||
Provisional Impairment | (14.4) | (37.6) | |||||
Ending balance | 312.5 | 326.9 | 312.5 | 326.9 | |||
SouthTX [Member] | |||||||
Goodwill [Roll Forward] | |||||||
Beginning balance | 90.1 | 90.1 | 0 | 0 | |||
Acquisition, February 27, 2015 | 160.3 | ||||||
Provisional Impairment | (9.6) | (70.2) | |||||
Ending balance | 80.5 | 90.1 | 80.5 | 90.1 | |||
SouthOK [Member] | |||||||
Goodwill [Roll Forward] | |||||||
Beginning balance | $ 0 | 0 | $ 0 | 0 | |||
Acquisition, February 27, 2015 | 182.2 | ||||||
Provisional Impairment | 0 | (182.2) | |||||
Ending balance | $ 0 | $ 0 | $ 0 | $ 0 |
Business Acquisitions, Subseque
Business Acquisitions, Subsequent Event (Details) | Oct. 31, 2016 | Sep. 30, 2016 |
Business Acquisition [Line Items] | ||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Percentage | 63.00% | |
Subsequent Event [Member] | ||
Business Acquisition [Line Items] | ||
Business Acquisition, Percentage of Voting Interest Acquired | 37.00% |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Inventory Disclosure [Abstract] | ||
Commodities | $ 139.3 | $ 128.3 |
Materials and supplies | 11 | 12.7 |
Inventories, net | $ 150.3 | $ 141 |
Property, Plant and Equipment62
Property, Plant and Equipment and Intangible Assets - Property, Plant and Equipment (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 12,354.5 | $ 11,935.1 |
Accumulated depreciation | (2,674.3) | (2,232.4) |
Property, plant and equipment, net | 9,680.2 | 9,702.7 |
Intangible assets | 2,036.6 | 2,036.6 |
Accumulated amortization | (343.6) | (226.5) |
Intangible assets, net | $ 1,693 | 1,810.1 |
Estimated useful lives | 20 years | |
Gathering Systems [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 6,447 | 6,304.5 |
Gathering Systems [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 5 years | |
Gathering Systems [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 20 years | |
Processing and Fractionation Facilities [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 3,312.1 | 2,995.2 |
Processing and Fractionation Facilities [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 5 years | |
Processing and Fractionation Facilities [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 25 years | |
Terminaling and Storage Facilities [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 1,194.5 | 1,115 |
Terminaling and Storage Facilities [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 5 years | |
Terminaling and Storage Facilities [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 25 years | |
Transportation Assets [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 452.1 | 454 |
Transportation Assets [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 10 years | |
Transportation Assets [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 25 years | |
Other Property, Plant and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 232.2 | 221.1 |
Other Property, Plant and Equipment [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 3 years | |
Other Property, Plant and Equipment [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 25 years | |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 120.6 | 108.8 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 596 | $ 736.5 |
Property, Plant and Equipment63
Property, Plant and Equipment and Intangible Assets - Additional Information (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 20 years | |
Atlas Energy [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Additions from acquisition | $ 1,354.9 | |
Estimated useful lives | 20 years | |
Badlands [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 20 years |
Property, Plant and Equipment64
Property, Plant and Equipment and Intangible Assets - Schedule of Changes in Intangible Assets (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2016USD ($) | |
Finite Lived Intangible Assets Roll Forward | |
Balance at December 31, 2015 | $ 1,810.1 |
Amortization | (117.1) |
Balance at September 30, 2016 | $ 1,693 |
Investments in Unconsolidated65
Investments in Unconsolidated Affiliates - Additional Information (Details) - Targa Resources Partners LP [Member] $ in Millions | 9 Months Ended |
Sep. 30, 2016USD ($)JointVenture | |
Gulf Coast Fractionators LP [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Ownership interest | 38.80% |
T2 Joint Ventures [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Number of non-operated joint ventures acquired in Atlas mergers | JointVenture | 3 |
Basis difference on preliminary fair values | $ | $ 36.7 |
Preliminary estimated useful lives of the underlying assets | 20 years |
T2 LaSalle [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Ownership interest | 75.00% |
T2 Eagle Ford [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Ownership interest | 50.00% |
T2 EF Cogen [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Ownership interest | 50.00% |
Investments in Unconsolidated66
Investments in Unconsolidated Affiliates - Activity Related to Partnership's Investments in Unconsolidated Affiliates (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | ||
Schedule of Equity Method Investments [Line Items] | |||||
Balance at December 31, 2015 | $ 258.9 | ||||
Equity earnings (loss) | $ (2.2) | $ (1.6) | (11.4) | $ (1.1) | |
Cash distributions | [1] | (5.2) | |||
Cash calls for expansion projects | 4.6 | ||||
Balance at September 30, 2016 | 246.9 | 246.9 | |||
Targa Resources Partners LP [Member] | Gulf Coast Fractionators LP [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Balance at December 31, 2015 | 49.5 | ||||
Equity earnings (loss) | 1.8 | ||||
Cash distributions | [1] | (4.4) | |||
Balance at September 30, 2016 | 46.9 | 46.9 | |||
Targa Resources Partners LP [Member] | T2 LaSalle [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Balance at December 31, 2015 | 63.6 | ||||
Equity earnings (loss) | (3.8) | ||||
Cash calls for expansion projects | 0.1 | ||||
Balance at September 30, 2016 | 59.9 | 59.9 | |||
Targa Resources Partners LP [Member] | T2 Eagle Ford [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Balance at December 31, 2015 | 123.8 | ||||
Equity earnings (loss) | (6.8) | ||||
Cash calls for expansion projects | 4.5 | ||||
Balance at September 30, 2016 | 121.5 | 121.5 | |||
Targa Resources Partners LP [Member] | T2 EF Cogen [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Balance at December 31, 2015 | 22 | ||||
Equity earnings (loss) | (2.6) | ||||
Cash distributions | [1] | (0.8) | |||
Balance at September 30, 2016 | $ 18.6 | $ 18.6 | |||
[1] | Includes $3.4 million in distributions received from GCF and the T2 Joint Ventures in excess of our share of cumulative earnings for the nine months ended September 30, 2016. Such excess distributions are considered a return of capital and disclosed in cash flows from investing activities in the Consolidated Statements of Cash Flows. |
Investments in Unconsolidated67
Investments in Unconsolidated Affiliates - Activity Related to Partnership's Investments in Unconsolidated Affiliates (Parenthetical) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Schedule of Equity Method Investments [Line Items] | ||
Return of capital from unconsolidated affiliate | $ 3.4 | $ 1.1 |
Targa Resources Partners LP [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Return of capital from unconsolidated affiliate | $ 3.4 |
Accounts Payable and Accrued 68
Accounts Payable and Accrued Liabilities (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Components of accounts payable and accrued liabilities [Abstract] | ||
Commodities | $ 441.2 | $ 385.2 |
Other goods and services | 91.9 | 142.9 |
Interest | 63.4 | 81 |
Compensation and benefits | 28 | 16 |
Income and other taxes | 49.6 | 13.4 |
Preferred dividends payable | 23.9 | 0.9 |
Other | 12.8 | 17.7 |
Accounts payable and accrued liabilities | $ 710.8 | $ 657.1 |
Accounts Payable and Accrued 69
Accounts Payable and Accrued Liabilities - Additional Information (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Payables And Accruals [Abstract] | ||
Outstanding checks | $ 23.7 | $ 34.2 |
Debt Obligations - Summary Of D
Debt Obligations - Summary Of Debt Obligations (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 | |
Current Obligations of the Partnership [Abstract] | |||
Current debt | [1] | $ 225 | $ 219.3 |
Long-term [Abstract] | |||
Long-term debt | 4,725.9 | 5,718.8 | |
Long-term debt including Unamortized premium(discount) and Debt issuance costs | [1] | 4,759.2 | 5,761.5 |
Debt issuance costs | [1] | (33.3) | (42.7) |
Total debt | [1] | 4,950.9 | 5,938.1 |
Letters of credit outstanding | 13.5 | 12.9 | |
Secured Debt [Member] | TRC Senior Secured Term Loan due February 2022 [Member] | |||
Long-term [Abstract] | |||
Long-term debt | 160 | 160 | |
Unamortized discount | (2.3) | (2.5) | |
Senior Unsecured Notes [Member] | Atlas Pipeline Partners [Member] | Senior Unsecured 6 5/8% Notes due October 2020 [Member] | |||
Long-term [Abstract] | |||
Long-term debt | [2] | 12.9 | 12.9 |
Unamortized premium | [1] | 0.1 | 0.2 |
Senior Unsecured Notes [Member] | Atlas Pipeline Partners [Member] | Senior Unsecured 4 3/4% Notes due November 2021 [Member] | |||
Long-term [Abstract] | |||
Long-term debt | [2] | 6.5 | 6.5 |
Senior Unsecured Notes [Member] | Atlas Pipeline Partners [Member] | Senior Unsecured 5 7/8% Notes due August 2023 [Member] | |||
Long-term [Abstract] | |||
Long-term debt | [1],[2] | 48.1 | 48.1 |
Unamortized premium | [1] | 0.5 | 0.5 |
Revolving Credit Facility [Member] | TRC Senior Secured Revolving Credit Facility due February 2020 [Member] | |||
Long-term [Abstract] | |||
Long-term debt | [3] | 275 | 440 |
Targa Resources Partners LP [Member] | TRP Senior Secured Revolving Credit Facility due October 2017 [Member] | |||
Long-term [Abstract] | |||
Long-term debt | [1],[4] | 0 | 280 |
Targa Resources Partners LP [Member] | Secured Debt [Member] | TRC Senior Secured Revolving Credit Facility [Member] | |||
Long-term [Abstract] | |||
Letters of credit outstanding | [3] | 0 | 0 |
Targa Resources Partners LP [Member] | Senior Unsecured Notes [Member] | Senior Unsecured 5% Notes due January 2018 [Member] | |||
Long-term [Abstract] | |||
Long-term debt | [1] | 733.6 | 1,100 |
Targa Resources Partners LP [Member] | Senior Unsecured Notes [Member] | Senior Unsecured 4 1/8% notes due November 2019 [Member] | |||
Long-term [Abstract] | |||
Long-term debt | [1] | 749.4 | 800 |
Targa Resources Partners LP [Member] | Senior Unsecured Notes [Member] | Senior Unsecured 6 5/8% Notes due October 2020 [Member] | |||
Long-term [Abstract] | |||
Long-term debt | [1] | 309.9 | 342.1 |
Unamortized premium | [1] | 3.9 | 5 |
Targa Resources Partners LP [Member] | Senior Unsecured Notes [Member] | Senior Unsecured 6 7/8% Notes due February 2021 [Member] | |||
Long-term [Abstract] | |||
Long-term debt | [1] | 478.6 | 483.6 |
Unamortized discount | [1] | (19.3) | (22.1) |
Targa Resources Partners LP [Member] | Senior Unsecured Notes [Member] | Senior Unsecured 6 3/8% Notes due August 2022 [Member] | |||
Long-term [Abstract] | |||
Long-term debt | [1] | 278.7 | 300 |
Targa Resources Partners LP [Member] | Senior Unsecured Notes [Member] | Senior Unsecured 5 1/4% Notes due May 2023 [Member] | |||
Long-term [Abstract] | |||
Long-term debt | [1] | 559.6 | 583.7 |
Targa Resources Partners LP [Member] | Senior Unsecured Notes [Member] | Senior Unsecured 4 1/4% Notes due November 2023 [Member] | |||
Long-term [Abstract] | |||
Long-term debt | [1] | 583.9 | 623.5 |
Targa Resources Partners LP [Member] | Senior Unsecured Notes [Member] | Senior Unsecured 6 3/4% Notes due March 2024 [Member] | |||
Long-term [Abstract] | |||
Long-term debt | [1] | 580.1 | 600 |
Targa Resources Partners LP [Member] | Revolving Credit Facility [Member] | TRP Senior Secured Revolving Credit Facility due October 2017 [Member] | |||
Long-term [Abstract] | |||
Letters of credit outstanding | [4] | $ 13.5 | $ 12.9 |
[1] | While we consolidate the debt of the Partnership in our financial statements, we do not have the obligation to make interest payments or debt payments with respect to the debt of the Partnership. | ||
[2] | APL notes are not guaranteed by us or the Partnership. | ||
[3] | As of September 30, 2016, availability under TRC’s $670 million senior secured revolving credit facility (“TRC Revolver”) was $395.0 million. | ||
[4] | As of September 30, 2016, availability under the Partnership’s $1.6 billion senior secured revolving credit facility (“TRP Revolver”) was $1,586.5 million. In October 2016, the TRP Revolver was amended. See “Subsequent Events – TRP Revolver Amendment.” |
Debt Obligations - Summary Of71
Debt Obligations - Summary Of Debt Obligations (Parenthetical) (Details) | 9 Months Ended |
Sep. 30, 2016USD ($) | |
Revolving Credit Facility [Member] | TRC Senior Secured Revolving Credit Facility due February 2020 [Member] | |
Debt Instrument [Line Items] | |
Maturity date | Feb. 29, 2020 |
Maximum borrowing capacity | $ 670,000,000 |
Remaining borrowing capacity | $ 395,000,000 |
Secured Debt [Member] | TRC Senior Secured Term Loan due February 2022 [Member] | |
Debt Instrument [Line Items] | |
Maturity date | Feb. 28, 2022 |
Senior Unsecured Notes [Member] | Atlas Pipeline Partners [Member] | Senior Unsecured 6 5/8% Notes due October 2020 [Member] | |
Debt Instrument [Line Items] | |
Maturity date | Oct. 1, 2020 |
Interest rate on fixed rate debt | 6.625% |
Senior Unsecured Notes [Member] | Atlas Pipeline Partners [Member] | Senior Unsecured 4 3/4% Notes due November 2021 [Member] | |
Debt Instrument [Line Items] | |
Maturity date | Nov. 15, 2021 |
Interest rate on fixed rate debt | 4.75% |
Senior Unsecured Notes [Member] | Atlas Pipeline Partners [Member] | Senior Unsecured 5 7/8% Notes due August 2023 [Member] | |
Debt Instrument [Line Items] | |
Maturity date | Aug. 1, 2023 |
Interest rate on fixed rate debt | 5.875% |
Targa Resources Partners LP [Member] | Accounts Receivable Securitization Facility [Member] | Accounts Receivable Securitization Facility Due December2016 | |
Debt Instrument [Line Items] | |
Maturity date | Dec. 31, 2016 |
Targa Resources Partners LP [Member] | Revolving Credit Facility [Member] | TRP Senior Secured Revolving Credit Facility due October 2017 [Member] | |
Debt Instrument [Line Items] | |
Maturity date | Oct. 31, 2017 |
Maximum borrowing capacity | $ 1,600,000,000 |
Remaining borrowing capacity | $ 1,586,500,000 |
Targa Resources Partners LP [Member] | Senior Unsecured Notes [Member] | Senior Unsecured 5% Notes due January 2018 [Member] | |
Debt Instrument [Line Items] | |
Maturity date | Jan. 15, 2018 |
Interest rate on fixed rate debt | 5.00% |
Targa Resources Partners LP [Member] | Senior Unsecured Notes [Member] | Senior Unsecured 4 1/8% notes due November 2019 [Member] | |
Debt Instrument [Line Items] | |
Maturity date | Nov. 15, 2019 |
Interest rate on fixed rate debt | 4.125% |
Targa Resources Partners LP [Member] | Senior Unsecured Notes [Member] | Senior Unsecured 6 5/8% Notes due October 2020 [Member] | |
Debt Instrument [Line Items] | |
Maturity date | Oct. 1, 2020 |
Interest rate on fixed rate debt | 6.625% |
Targa Resources Partners LP [Member] | Senior Unsecured Notes [Member] | Senior Unsecured 6 7/8% Notes due February 2021 [Member] | |
Debt Instrument [Line Items] | |
Maturity date | Feb. 1, 2021 |
Interest rate on fixed rate debt | 6.875% |
Targa Resources Partners LP [Member] | Senior Unsecured Notes [Member] | Senior Unsecured 6 3/8% Notes due August 2022 [Member] | |
Debt Instrument [Line Items] | |
Maturity date | Aug. 1, 2022 |
Interest rate on fixed rate debt | 6.375% |
Targa Resources Partners LP [Member] | Senior Unsecured Notes [Member] | Senior Unsecured 5 1/4% Notes due May 2023 [Member] | |
Debt Instrument [Line Items] | |
Maturity date | May 1, 2023 |
Interest rate on fixed rate debt | 5.25% |
Targa Resources Partners LP [Member] | Senior Unsecured Notes [Member] | Senior Unsecured 4 1/4% Notes due November 2023 [Member] | |
Debt Instrument [Line Items] | |
Maturity date | Nov. 15, 2023 |
Interest rate on fixed rate debt | 4.25% |
Targa Resources Partners LP [Member] | Senior Unsecured Notes [Member] | Senior Unsecured 6 3/4% Notes due March 2024 [Member] | |
Debt Instrument [Line Items] | |
Maturity date | Mar. 15, 2024 |
Interest rate on fixed rate debt | 6.75% |
Debt Obligations - Range of Int
Debt Obligations - Range of Interest Rates and Weighted Average Interest Rate Incurred on Variable Rate Debt Obligations (Details) | Sep. 30, 2016 | |
TRC Revolver [Member] | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate incurred | 2.40% | |
TRP Revolver [Member] | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate incurred | 2.60% | |
Minimum [Member] | TRC Revolver [Member] | ||
Debt Instrument [Line Items] | ||
Range of interest rates incurred | 2.20% | |
Minimum [Member] | TRP Revolver [Member] | ||
Debt Instrument [Line Items] | ||
Range of interest rates incurred | 2.40% | |
Maximum [Member] | TRC Revolver [Member] | ||
Debt Instrument [Line Items] | ||
Range of interest rates incurred | 4.50% | |
Maximum [Member] | TRP Revolver [Member] | ||
Debt Instrument [Line Items] | ||
Range of interest rates incurred | 4.80% | |
Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Range of interest rates incurred | 5.75% | [1] |
Weighted average interest rate incurred | 5.75% | [1] |
Targa Resources Partners LP [Member] | Accounts Receivable Securitization Facility [Member] | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate incurred | 1.20% | |
Targa Resources Partners LP [Member] | Accounts Receivable Securitization Facility [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Range of interest rates incurred | 1.20% | |
Targa Resources Partners LP [Member] | Accounts Receivable Securitization Facility [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Range of interest rates incurred | 1.30% | |
[1] | The TRC senior secured term loan is a Eurodollar rate loan with an interest rate of LIBOR (with a LIBOR floor of 1%) plus an applicable rate of 4.75%. |
Debt Obligations - Range of I73
Debt Obligations - Range of Interest Rates and Weighted Average Interest Rate Incurred on Variable Rate Debt Obligations (Parenthetical) (Details) - Secured Debt [Member] | 9 Months Ended |
Sep. 30, 2016 | |
LIBOR [Member] | |
Debt Instrument [Line Items] | |
Senior secured loan variable rate | 1.00% |
Eurodollar Rate [Member] | |
Debt Instrument [Line Items] | |
Interest rate on fixed rate debt | 4.75% |
Debt Obligations - Summary of74
Debt Obligations - Summary of Debt Repurchased on Open Market Portion of Outstanding Senior Notes (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2016USD ($) | |
Debt Instrument [Line Items] | |
Debt Repurchase, Book Value | $ 559.2 |
Open market purchases of senior notes | (534.3) |
Gain/(Loss) on Debt Repurchase | 24.9 |
Debt Repurchase, Write-off of Debt Issuance Costs | (3.5) |
Net Gain (Loss) on Debt Repurchase | 21.4 |
5¼% Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Debt Repurchase, Book Value | 24.1 |
Open market purchases of senior notes | (20.1) |
Gain/(Loss) on Debt Repurchase | 4 |
Debt Repurchase, Write-off of Debt Issuance Costs | (0.2) |
Net Gain (Loss) on Debt Repurchase | 3.8 |
4¼% Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Debt Repurchase, Book Value | 39.5 |
Open market purchases of senior notes | (31.8) |
Gain/(Loss) on Debt Repurchase | 7.7 |
Debt Repurchase, Write-off of Debt Issuance Costs | (0.3) |
Net Gain (Loss) on Debt Repurchase | 7.4 |
6⅞% Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Debt Repurchase, Book Value | 4.8 |
Open market purchases of senior notes | (4.3) |
Gain/(Loss) on Debt Repurchase | 0.5 |
Debt Repurchase, Write-off of Debt Issuance Costs | (0.1) |
Net Gain (Loss) on Debt Repurchase | 0.4 |
6⅝% Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Debt Repurchase, Book Value | 32.6 |
Open market purchases of senior notes | (29.5) |
Gain/(Loss) on Debt Repurchase | 3.1 |
Net Gain (Loss) on Debt Repurchase | 3.1 |
6⅜% Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Debt Repurchase, Book Value | 21.3 |
Open market purchases of senior notes | (18.7) |
Gain/(Loss) on Debt Repurchase | 2.6 |
Debt Repurchase, Write-off of Debt Issuance Costs | (0.2) |
Net Gain (Loss) on Debt Repurchase | 2.4 |
6¾% Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Debt Repurchase, Book Value | 19.9 |
Open market purchases of senior notes | (17.5) |
Gain/(Loss) on Debt Repurchase | 2.4 |
Debt Repurchase, Write-off of Debt Issuance Costs | (0.2) |
Net Gain (Loss) on Debt Repurchase | 2.2 |
5% Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Debt Repurchase, Book Value | 366.4 |
Open market purchases of senior notes | (368.2) |
Gain/(Loss) on Debt Repurchase | (1.8) |
Debt Repurchase, Write-off of Debt Issuance Costs | (2.1) |
Net Gain (Loss) on Debt Repurchase | (3.9) |
4⅛% Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Debt Repurchase, Book Value | 50.6 |
Open market purchases of senior notes | (44.2) |
Gain/(Loss) on Debt Repurchase | 6.4 |
Debt Repurchase, Write-off of Debt Issuance Costs | (0.4) |
Net Gain (Loss) on Debt Repurchase | $ 6 |
Debt Obligations - Schedule of
Debt Obligations - Schedule of Contractual Maturities of Senior Notes (Details) - Senior Notes [Member] $ in Millions | Sep. 30, 2016USD ($) |
Contractual Obligation [Line Items] | |
Total | $ 4,341.3 |
Remainder of 2016 | 0 |
2,017 | 0 |
2,018 | 733.6 |
2,019 | 749.4 |
2,020 | 322.8 |
After 2,020 | $ 2,535.5 |
Debt Obligations - Additional I
Debt Obligations - Additional Information (Details) - USD ($) | Nov. 15, 2016 | Oct. 31, 2016 | Dec. 31, 2016 | Sep. 30, 2016 | Sep. 30, 2015 | Feb. 28, 2015 |
Debt Instrument [Line Items] | ||||||
Write off of debt issuance cost | $ 3,500,000 | |||||
Debt Repurchase, Book Value | 559,200,000 | |||||
Payment for redemption of debt | $ 1,168,800,000 | |||||
Note Redemptions [Member] | Scenario Forecast Member | ||||||
Debt Instrument [Line Items] | ||||||
Loss on extinguishment of debt | $ 9,700,000 | |||||
Premium Paid | 4,900,000 | |||||
Write off of debt issuance cost | 1,100,000 | |||||
Write off of debt premiums | 500,000 | |||||
Write off debt discounts | 4,200,000 | |||||
Second Amendment [Member] | Targa Resources Partners LP [Member] | Revolving Credit Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Additional commitment increase available upon request | $ 300,000,000 | |||||
Senior Notes with Offers Tendered [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Premium Paid | 41,800,000 | |||||
Senior Notes with Offers Tendered [Member] | Scenario Forecast Member | ||||||
Debt Instrument [Line Items] | ||||||
Loss on extinguishment of debt | 59,200,000 | |||||
Premium Paid | 41,800,000 | |||||
Write off of debt issuance cost | 5,800,000 | |||||
Write off of debt premiums | 3,500,000 | |||||
Write off debt discounts | 15,100,000 | |||||
Senior Notes with Offers Tendered [Member] | Senior Unsecured 5% Notes due January 2018 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Premium Paid | 16,900,000 | |||||
Senior Notes with Offers Tendered [Member] | Senior Unsecured 6 5/8% Notes due October 2020 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Premium Paid | 10,500,000 | |||||
Senior Notes with Offers Tendered [Member] | Senior Unsecured 6 7/8% Notes due February 2021 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Premium Paid | $ 14,400,000 | |||||
Subsequent Event [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Repurchase, Book Value | $ 146,200,000 | |||||
Debt instrument redemption period | Nov. 15, 2016 | |||||
Payment for redemption of debt | $ 151,100,000 | |||||
Subsequent Event [Member] | Senior Unsecured 6 5/8% Notes due October 2020 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Redemption price, percentage of face value | 103.313% | |||||
Subsequent Event [Member] | Senior Unsecured 6 5/8% Notes due October 2020 [Member] | Atlas Pipeline Partners [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Redemption price, percentage of face value | 103.313% | |||||
Subsequent Event [Member] | Senior Unsecured 6 7/8% Notes due February 2021 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Redemption price, percentage of face value | 103.438% | |||||
Subsequent Event [Member] | Second Amendment [Member] | Targa Resources Partners LP [Member] | Revolving Credit Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $ 1,600,000,000 | |||||
Additional commitment increase available upon request | $ 500,000,000 | |||||
Debt maturity period | 2020-10 | |||||
Subsequent Event [Member] | Second Amendment [Member] | Scenario Forecast Member | Targa Resources Partners LP [Member] | Revolving Credit Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Write off of debt issuance cost | $ 900,000 | |||||
Subsequent Event [Member] | Senior Notes [Member] | 5 1/8% Senior Notes due February 2025 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Redemption price, percentage of face value | 5.125% | |||||
Maturity date | Feb. 28, 2025 | |||||
Net proceeds from private placement of notes | $ 496,200,000 | |||||
Subsequent Event [Member] | Senior Notes [Member] | 5 3/8% Senior Notes due February 2027 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Redemption price, percentage of face value | 5.375% | |||||
Maturity date | Feb. 28, 2027 | |||||
Aggregate principal amount issued | $ 500,000,000 | |||||
Net proceeds from private placement of notes | $ 496,200,000 | |||||
Subsequent Event [Member] | Concurrent Senior Notes Tender Offers [Member] | Senior Unsecured 5% Notes due January 2018 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Maturity date | Jan. 15, 2018 | |||||
Subsequent Event [Member] | Concurrent Senior Notes Tender Offers [Member] | Senior Unsecured 6 5/8% Notes due October 2020 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Maturity date | Oct. 1, 2020 | |||||
Interest rate on fixed rate debt | 6.625% | |||||
Subsequent Event [Member] | Concurrent Senior Notes Tender Offers [Member] | Senior Unsecured 6 7/8% Notes due February 2021 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Maturity date | Feb. 1, 2021 | |||||
Interest rate on fixed rate debt | 6.875% |
Debt Obligations - Results of T
Debt Obligations - Results of Tender Offers (Details) - Senior Notes with Offers Tendered [Member] $ in Millions | 9 Months Ended |
Sep. 30, 2016USD ($) | |
Debt Instrument [Line Items] | |
Outstanding Note Balance Prior to Tender Offers | $ 1,522.1 |
Amount Tendered | 1,138.3 |
Premium Paid | 41.8 |
Accrued Interest Paid | 10.3 |
Total Tender Offer Payments | 1,190.4 |
Note Balance After Tender Offers | 383.8 |
Senior Unsecured 5% Notes due January 2018 [Member] | |
Debt Instrument [Line Items] | |
Outstanding Note Balance Prior to Tender Offers | 733.6 |
Amount Tendered | 483.1 |
Premium Paid | 16.9 |
Accrued Interest Paid | 5.4 |
Total Tender Offer Payments | 505.4 |
Note Balance After Tender Offers | 250.5 |
Senior Unsecured 6 5/8% Notes due October 2020 [Member] | |
Debt Instrument [Line Items] | |
Outstanding Note Balance Prior to Tender Offers | 309.9 |
Amount Tendered | 281.7 |
Premium Paid | 10.5 |
Accrued Interest Paid | 0.3 |
Total Tender Offer Payments | 292.5 |
Note Balance After Tender Offers | 28.2 |
Senior Unsecured 6 7/8% Notes due February 2021 [Member] | |
Debt Instrument [Line Items] | |
Outstanding Note Balance Prior to Tender Offers | 478.6 |
Amount Tendered | 373.5 |
Premium Paid | 14.4 |
Accrued Interest Paid | 4.6 |
Total Tender Offer Payments | 392.5 |
Note Balance After Tender Offers | $ 105.1 |
Other Long-term Liabilities - S
Other Long-term Liabilities - Schedule of Other Long-term Liabilities (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Other Liabilities Noncurrent [Abstract] | ||
Asset retirement obligations | $ 64.8 | $ 70.4 |
Mandatorily redeemable preferred interests | 64.2 | 82.9 |
Deferred revenue and other | 30.1 | 26.9 |
Total long-term liabilities | $ 159.1 | $ 180.2 |
Other Long-term Liabilities - C
Other Long-term Liabilities - Changes in Aggregate Asset Retirement Obligations (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Changes in aggregate asset retirement obligations [Roll Forward] | ||
Balance at December 31, 2015 | $ 70.4 | |
Change in cash flow estimate | (9.1) | $ 3.8 |
Accretion expense | 3.5 | $ 4 |
Balance at September 30, 2016 | $ 64.8 |
Other Long-term Liabilities, Ma
Other Long-term Liabilities, Mandatorily Redeemable Preferred Interests (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2016USD ($)JointVenture | |
Changes in long-term liabilities attributable to mandatorily redeemable preferred interests [Abstract] | |
Balance at December 31, 2015 | $ 82.9 |
Change in estimated redemption value included in interest expense | 18.8 |
Balance at September 30, 2016 | $ 64.2 |
Mandatorily Redeemable Noncontrolling Interests [Member] | |
Changes in long-term liabilities attributable to mandatorily redeemable preferred interests [Abstract] | |
Number of joint ventures | JointVenture | 2 |
Balance at December 31, 2015 | $ 82.9 |
Income attributable to mandatorily redeemable preferred interests | 0.1 |
Change in estimated redemption value included in interest expense | (18.8) |
Balance at September 30, 2016 | $ 64.2 |
Mandatorily Redeemable Noncontrolling Interests [Member] | West OK [Member] | |
Changes in long-term liabilities attributable to mandatorily redeemable preferred interests [Abstract] | |
Ownership interest | 100.00% |
Mandatorily Redeemable Noncontrolling Interests [Member] | West TX [Member] | |
Changes in long-term liabilities attributable to mandatorily redeemable preferred interests [Abstract] | |
Ownership interest | 72.80% |
Mandatorily Redeemable Noncontrolling Interests [Member] | Joint Ventures [Member] | |
Changes in long-term liabilities attributable to mandatorily redeemable preferred interests [Abstract] | |
Number of joint ventures | JointVenture | 2 |
Preferred Stock - Additional In
Preferred Stock - Additional Information (Details) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2016USD ($)$ / sharesshares | Mar. 31, 2016USD ($)Trancheshares | Sep. 30, 2016USD ($)$ / sharesshares | |
Class Of Stock [Line Items] | |||
Number of tranches sold to investors | Tranche | 2 | ||
Gross proceeds | $ 994.1 | $ 994.1 | |
Term of preferred stock warrants | 7 years | ||
Liquidated damage percentage multiplier for the first 60 days | 0.25% | ||
Additional liquidated damage percentage multiplier for each 60 subsequent days | 0.25% | ||
Liquidated damage percentage for 61-120 days | 0.50% | ||
Liquidation damage percentage for 121-180 days | 0.75% | ||
Liquidation damage percentage thereafter | 1.00% | ||
Liquidation damage percentage multiplier thereafter | 1.00% | ||
Net Proceeds- Initial Relative Fair Value Allocation | $ 970.3 | ||
Transaction fees | 23.8 | ||
Allocation to BCF | $ (614.4) | ||
Accounting Conversion Price Of Convertible Preferred Stock | $ / shares | $ 17.02 | ||
Conversion price of preferred stock into common stock | $ / shares | $ 20.77 | ||
Accrued preferred dividend | $ 22.9 | $ 22.9 | |
Preferred stock dividend paid | $ 26.8 | ||
Accrued preferred dividends payable date | Nov. 14, 2016 | ||
Deemed dividends on Series A preferred stock | $ 5.8 | $ 12.3 | |
Maximum [Member] | |||
Class Of Stock [Line Items] | |||
Conversion of warrant into preferred stock | shares | 20,083,731 | 20,083,731 | |
Series A Warrants [Member] | |||
Class Of Stock [Line Items] | |||
Preferred stock, shares issued to investors | shares | 13,550,004 | 13,550,004 | |
Exercise price of warrants | $ / shares | $ 18.88 | $ 18.88 | |
Net Proceeds- Initial Relative Fair Value Allocation | $ 135.8 | ||
Series B Warrants [Member] | |||
Class Of Stock [Line Items] | |||
Preferred stock, shares issued to investors | shares | 6,533,727 | 6,533,727 | |
Exercise price of warrants | $ / shares | $ 25.11 | $ 25.11 | |
Net Proceeds- Initial Relative Fair Value Allocation | $ 46.6 | ||
Series A Preferred Stock [Member] | |||
Class Of Stock [Line Items] | |||
Preferred stock, shares issued to investors | shares | 1,200,000 | 1,200,000 | |
Preferred stock, liquidation per share | $ / shares | $ 1,000 | $ 1,000 | |
Preferred stock, percentage of dividend | 9.50% | 9.50% | |
Preferred stock dividend payment terms | fixed dividend payable quarterly 45 days after the end of each fiscal quarter | ||
Preferred stock, discount on shares | $ 177.2 | $ 177.2 | |
Preferred stock redemption premium percentage in sixth year | 10.00% | ||
Preferred stock redemption premium percentage in sixth year and thereafter | 5.00% | ||
Preferred stock redemption premium percentage in twelfth year | 10.00% | ||
Volume Weighted Average Share Price | $ / shares | $ 18.88 | ||
Preferred stock redemption premium percentage in twelfth year and thereafter | 120.00% | ||
Preferred stock premium change in next twelve month | 25.00% | ||
Preferred stock premium change in two year | 20.00% | ||
Preferred stock premium change in three year | 15.00% | ||
Preferred stock premium change in year four through six | 10.00% | ||
Preferred stock premium change in year six and thereafter | 5.00% | ||
Maximum number of common share would be issued upon conversion of preferred share | shares | 46,466,057 | ||
Net Proceeds- Initial Relative Fair Value Allocation | $ 787.9 | ||
Allocation to BCF | $ 614.4 | ||
Series A Preferred Stock [Member] | 10% Redemption Premium | |||
Class Of Stock [Line Items] | |||
Preferred stock conversion redemption premium percentage in sixth year | 10.00% | ||
Benefit from conversion right by redemption premium | $ 96.5 | ||
Series A Preferred Stock [Member] | 5% Redemption Premium | |||
Class Of Stock [Line Items] | |||
Benefit from conversion right by redemption premium | $ 48.3 | ||
Preferred stock conversion redemption premium percentage in year seven through twelve year | 5.00% | ||
Series A Preferred Stock [Member] | Maximum [Member] | |||
Class Of Stock [Line Items] | |||
Incurrence of indebtedness other than stipulated fixed charge coverage | $ 2,750 | $ 2,750 | |
Private Placement [Member] | Series A Warrants [Member] | |||
Class Of Stock [Line Items] | |||
Conversion of warrant into preferred stock | shares | 13,550,004 | ||
Private Placement [Member] | Series B Warrants [Member] | |||
Class Of Stock [Line Items] | |||
Conversion of warrant into preferred stock | shares | 6,533,727 | ||
Private Placement [Member] | Series A Preferred Stock [Member] | |||
Class Of Stock [Line Items] | |||
Preferred stock, shares issued to investors | shares | 965,100 |
Accounting for Series A Preferr
Accounting for Series A Preferred Stock (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Mar. 31, 2016 | Sep. 30, 2016 | |
Class Of Stock [Line Items] | ||
Proceeds from issuance of preferred stock and warrants | $ 994.1 | $ 994.1 |
Transaction fees | (23.8) | |
Net Proceeds- Initial Relative Fair Value Allocation | 970.3 | |
Allocation to BCF | 614.4 | |
Per balance sheet upon issuance | 614.4 | |
Series A Warrants [Member] | ||
Class Of Stock [Line Items] | ||
Net Proceeds- Initial Relative Fair Value Allocation | 135.8 | |
Per balance sheet upon issuance | 135.8 | |
Series B Warrants [Member] | ||
Class Of Stock [Line Items] | ||
Net Proceeds- Initial Relative Fair Value Allocation | 46.6 | |
Per balance sheet upon issuance | 46.6 | |
Series A Preferred Stock [Member] | ||
Class Of Stock [Line Items] | ||
Net Proceeds- Initial Relative Fair Value Allocation | 787.9 | |
Allocation to BCF | (614.4) | |
Per balance sheet upon issuance | $ 173.5 |
Common Stock and Related Matt83
Common Stock and Related Matters - Additional Information (Details) - USD ($) | 1 Months Ended | 9 Months Ended | ||
Oct. 31, 2016 | Sep. 30, 2016 | Sep. 30, 2015 | May 31, 2016 | |
Securities Financing Transaction [Line Items] | ||||
Proceeds from issuance of common stock | $ 401,000,000 | $ 335,500,000 | ||
Maximum [Member] | ||||
Securities Financing Transaction [Line Items] | ||||
Issued and exercisable to common stock | 20,083,731 | |||
Series A Warrants [Member] | ||||
Securities Financing Transaction [Line Items] | ||||
Issued and exercisable to common stock | 13,550,004 | |||
Series B Warrants [Member] | ||||
Securities Financing Transaction [Line Items] | ||||
Issued and exercisable to common stock | 6,533,727 | |||
Common Stock [Member] | ||||
Securities Financing Transaction [Line Items] | ||||
Issuance of common stock (in shares) | 9,211,000 | 3,738,000 | ||
Warrants exercised for shares of common stock | 3,185,623 | |||
Subsequent Event [Member] | Common Stock [Member] | ||||
Securities Financing Transaction [Line Items] | ||||
Warrants exercised for shares of common stock | 7,633,564 | |||
Subsequent Event [Member] | Common Stock [Member] | Series A Warrants [Member] | Maximum [Member] | ||||
Securities Financing Transaction [Line Items] | ||||
Issued and exercisable to common stock | 8,972,964 | |||
Subsequent Event [Member] | Common Stock [Member] | Series B Warrants [Member] | Maximum [Member] | ||||
Securities Financing Transaction [Line Items] | ||||
Issued and exercisable to common stock | 4,326,707 | |||
Equity Distribution Agreement May 2016 [Member] | ||||
Securities Financing Transaction [Line Items] | ||||
Amount of common stock authorized under equity distribution agreement | $ 500,000,000 | |||
Issuance of common stock (in shares) | 9,210,796 | |||
Proceeds from issuance of common stock | $ 398,000,000 |
Common Stock and Related Matt84
Common Stock and Related Matters - Activity Related to Detachable Warrants Issued as Part of Series A Preferred Offering (Details) | 9 Months Ended |
Sep. 30, 2016shares | |
Shares of Common Stock Issued [Member] | |
Class Of Warrant Or Right [Line Items] | |
Exercise of warrants - share settled (in shares) | 3,185,623 |
Series A Warrants [Member] | |
Class Of Warrant Or Right [Line Items] | |
Warrants beginning balance | |
Issued and exercisable to common stock | 13,550,004 |
Exercised | (3,950,856) |
Warrants ending balance | 9,599,148 |
Series B Warrants [Member] | |
Class Of Warrant Or Right [Line Items] | |
Warrants beginning balance | |
Issued and exercisable to common stock | 6,533,727 |
Exercised | (1,905,078) |
Warrants ending balance | 4,628,649 |
Common Stock and Related Matt85
Common Stock and Related Matters - Dividends Declared And Or Paid (Details) - USD ($) $ / shares in Units, $ in Millions | 9 Months Ended | ||
Sep. 30, 2016 | Dec. 31, 2015 | ||
Dividends Payable [Line Items] | |||
Date Paid or To Be Paid | Nov. 14, 2016 | ||
Accrued Dividends | $ 23.9 | $ 0.9 | |
Dividend Declared, Q3 2016 [Member] | |||
Dividends Payable [Line Items] | |||
Date Paid or To Be Paid | Nov. 15, 2016 | ||
Total Common Dividends Declared | $ 166.4 | ||
Amount of Common Dividends Paid | 164.6 | ||
Accrued Dividends | [1] | $ 1.8 | |
Dividend Declared per Share of Common Stock | $ 0.91000 | ||
Dividend Declared, Q2 2016 [Member] | |||
Dividends Payable [Line Items] | |||
Date Paid or To Be Paid | Aug. 15, 2016 | ||
Total Common Dividends Declared | $ 153.1 | ||
Amount of Common Dividends Paid | 151.6 | ||
Accrued Dividends | [1] | $ 1.5 | |
Dividend Declared per Share of Common Stock | $ 0.91000 | ||
Dividend Declared, Q1 2016 [Member] | |||
Dividends Payable [Line Items] | |||
Date Paid or To Be Paid | May 16, 2016 | ||
Total Common Dividends Declared | $ 147.8 | ||
Amount of Common Dividends Paid | 146.1 | ||
Accrued Dividends | [1] | $ 1.7 | |
Dividend Declared per Share of Common Stock | $ 0.91000 | ||
Dividend Declared, Q4 2015 [Member] | |||
Dividends Payable [Line Items] | |||
Date Paid or To Be Paid | Feb. 9, 2016 | ||
Total Common Dividends Declared | $ 51.7 | ||
Amount of Common Dividends Paid | 51 | ||
Accrued Dividends | [1] | $ 0.7 | |
Dividend Declared per Share of Common Stock | $ 0.91000 | ||
[1] | Represents accrued dividends on restricted stock and restricted stock units that are payable upon vesting. |
Partnership Units and Related86
Partnership Units and Related Matters - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | Oct. 17, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2016 |
Schedule of Equity Method Investments [Line Items] | ||||||
Distributions declaration date | Oct. 19, 2016 | Oct. 17, 2016 | ||||
Distributions payable date | Nov. 15, 2016 | |||||
Partnership Equity [Abstract] | ||||||
Number of days from end of each quarter by when cash is distributed to unit holders | 45 days | |||||
Distributions Declared [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Distributions payable date | Nov. 11, 2016 | Aug. 11, 2016 | May 12, 2016 | Feb. 9, 2016 | ||
Partnership Equity [Abstract] | ||||||
Total distributions to general and limited partners | $ 200.4 | |||||
Distributions to Targa Resources Corp. | $ 154.8 | $ 61.4 | ||||
Distribution declared | $ 191.9 | $ 178.9 | ||||
Subsequent Event [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Distributions declared | $ 0.1875 | |||||
Series A Cumulative Redeemable Perpetual Preferred Units [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Preferred units, outstanding | 5,000,000 | 5,000,000 | ||||
Distribution to preferred unitholders | $ 8.4 |
Earnings per Common Share (Deta
Earnings per Common Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Earnings Per Share [Abstract] | ||||
Net income | $ (3.2) | $ 20.8 | $ (18.4) | $ 80.6 |
Less: Net income attributable to noncontrolling interests | 7.5 | 8.1 | 18.2 | 49.2 |
Less: Dividends on preferred stock | 28.7 | 62 | ||
Net income (loss) attributable to common shareholders | $ (39.4) | $ 12.7 | $ (98.6) | $ 31.4 |
Weighted average shares outstanding - basic (in shares) | 168 | 56 | 145.5 | 52.6 |
Net income available per common share - basic (in dollars per share) | $ (0.23) | $ 0.23 | $ (0.68) | $ 0.60 |
Weighted average shares outstanding - basic (in shares) | 168 | 56 | 145.5 | 52.6 |
Dilutive effect of unvested stock awards (in shares) | 0 | 0.1 | 0 | 0.1 |
Weighted average shares outstanding - diluted (in shares) | 168 | 56.1 | 145.5 | 52.7 |
Net income available per common share - diluted (in dollars per share) | $ (0.23) | $ 0.23 | $ (0.68) | $ 0.60 |
Earnings per Common Share - Sum
Earnings per Common Share - Summary of Potential Common Stock Equivalents Excluded from Determination of Diluted Earnings Per Share (Details) - shares shares in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2016 | Sep. 30, 2016 | |
Unvested Restricted Stock Awards [Member] | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Anti-dilutive shares excluded from the determination of diluted earnings per share (in shares) | 0.8 | 0.5 |
Warrants to Purchase Common Stock [Member] | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Anti-dilutive shares excluded from the determination of diluted earnings per share (in shares) | 8.9 | 6.1 |
Series A Preferred Stock [Member] | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Anti-dilutive shares excluded from the determination of diluted earnings per share (in shares) | 46.5 | 33.7 |
Derivative Instruments and He89
Derivative Instruments and Hedging Activities - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2016 | Dec. 31, 2015 | Feb. 27, 2015 | |
Derivative Line [Items] | ||||
Fair value of derivative assets | $ 102.1 | |||
Pro forma net presentation, asset | $ 16.6 | $ 16.6 | ||
Targa Resources Partners LP [Member] | Atlas Pipeline Partners [Member] | ||||
Derivative Line [Items] | ||||
Fair value of derivative assets | $ 102.1 | |||
Fair value of derivative contracts received as component of derivative contract settlement | 20.9 | $ 67.9 | ||
Ineffectiveness losses | $ (0.3) | $ (0.5) |
Derivative Instruments and He90
Derivative Instruments and Hedging Activities - Notional Volumes Of The Partnership's Commodity Derivative Contracts (Details) - Targa Resources Partners LP [Member] | 9 Months Ended |
Sep. 30, 2016MMBTUbbl | |
Year 2016 [Member] | Swaps [Member] | Condensate [Member] | |
Derivative Line [Items] | |
Notional volumes of commodity hedges (in Bbl per day) | 2,770 |
Year 2016 [Member] | Swaps [Member] | Natural Gas [Member] | |
Derivative Line [Items] | |
Notional volumes of commodity hedges (in MMBtu per day) | MMBTU | 134,436 |
Year 2016 [Member] | Swaps [Member] | NGL [Member] | |
Derivative Line [Items] | |
Notional volumes of commodity hedges (in Bbl per day) | 5,073 |
Year 2016 [Member] | Basis Swaps [Member] | Natural Gas [Member] | |
Derivative Line [Items] | |
Notional volumes of commodity hedges (in MMBtu per day) | MMBTU | 95,979 |
Year 2016 [Member] | Options [Member] | Condensate [Member] | |
Derivative Line [Items] | |
Notional volumes of commodity hedges (in Bbl per day) | 790 |
Year 2016 [Member] | Options [Member] | Natural Gas [Member] | |
Derivative Line [Items] | |
Notional volumes of commodity hedges (in MMBtu per day) | MMBTU | 22,900 |
Year 2016 [Member] | Options [Member] | NGL [Member] | |
Derivative Line [Items] | |
Notional volumes of commodity hedges (in Bbl per day) | 920 |
Year 2016 [Member] | Future [Member] | NGL [Member] | |
Derivative Line [Items] | |
Notional volumes of commodity hedges (in Bbl per day) | 85,887 |
Year 2017 [Member] | Swaps [Member] | Condensate [Member] | |
Derivative Line [Items] | |
Notional volumes of commodity hedges (in Bbl per day) | 1,850 |
Year 2017 [Member] | Swaps [Member] | Natural Gas [Member] | |
Derivative Line [Items] | |
Notional volumes of commodity hedges (in MMBtu per day) | MMBTU | 92,448 |
Year 2017 [Member] | Swaps [Member] | NGL [Member] | |
Derivative Line [Items] | |
Notional volumes of commodity hedges (in Bbl per day) | 3,875 |
Year 2017 [Member] | Basis Swaps [Member] | Natural Gas [Member] | |
Derivative Line [Items] | |
Notional volumes of commodity hedges (in MMBtu per day) | MMBTU | 58,026 |
Year 2017 [Member] | Options [Member] | Condensate [Member] | |
Derivative Line [Items] | |
Notional volumes of commodity hedges (in Bbl per day) | 1,380 |
Year 2017 [Member] | Options [Member] | Natural Gas [Member] | |
Derivative Line [Items] | |
Notional volumes of commodity hedges (in MMBtu per day) | MMBTU | 22,900 |
Year 2017 [Member] | Options [Member] | NGL [Member] | |
Derivative Line [Items] | |
Notional volumes of commodity hedges (in Bbl per day) | 1,468 |
Year 2017 [Member] | Future [Member] | NGL [Member] | |
Derivative Line [Items] | |
Notional volumes of commodity hedges (in Bbl per day) | 50,889 |
Year 2018 [Member] | Swaps [Member] | Condensate [Member] | |
Derivative Line [Items] | |
Notional volumes of commodity hedges (in Bbl per day) | 1,350 |
Year 2018 [Member] | Swaps [Member] | Natural Gas [Member] | |
Derivative Line [Items] | |
Notional volumes of commodity hedges (in MMBtu per day) | MMBTU | 68,800 |
Year 2018 [Member] | Swaps [Member] | NGL [Member] | |
Derivative Line [Items] | |
Notional volumes of commodity hedges (in Bbl per day) | 2,678 |
Year 2018 [Member] | Basis Swaps [Member] | Natural Gas [Member] | |
Derivative Line [Items] | |
Notional volumes of commodity hedges (in MMBtu per day) | MMBTU | 0 |
Year 2018 [Member] | Options [Member] | Condensate [Member] | |
Derivative Line [Items] | |
Notional volumes of commodity hedges (in Bbl per day) | 691 |
Year 2018 [Member] | Options [Member] | Natural Gas [Member] | |
Derivative Line [Items] | |
Notional volumes of commodity hedges (in MMBtu per day) | MMBTU | 9,486 |
Year 2018 [Member] | Options [Member] | NGL [Member] | |
Derivative Line [Items] | |
Notional volumes of commodity hedges (in Bbl per day) | 1,676 |
Year 2018 [Member] | Future [Member] | NGL [Member] | |
Derivative Line [Items] | |
Notional volumes of commodity hedges (in Bbl per day) | 5,000 |
Year 2019 [Member] | Swaps [Member] | Condensate [Member] | |
Derivative Line [Items] | |
Notional volumes of commodity hedges (in Bbl per day) | 223 |
Year 2019 [Member] | Swaps [Member] | Natural Gas [Member] | |
Derivative Line [Items] | |
Notional volumes of commodity hedges (in MMBtu per day) | MMBTU | 29,683 |
Year 2019 [Member] | Swaps [Member] | NGL [Member] | |
Derivative Line [Items] | |
Notional volumes of commodity hedges (in Bbl per day) | 1,779 |
Year 2019 [Member] | Basis Swaps [Member] | Natural Gas [Member] | |
Derivative Line [Items] | |
Notional volumes of commodity hedges (in MMBtu per day) | MMBTU | 0 |
Year 2019 [Member] | Options [Member] | Condensate [Member] | |
Derivative Line [Items] | |
Notional volumes of commodity hedges (in Bbl per day) | 590 |
Year 2019 [Member] | Options [Member] | Natural Gas [Member] | |
Derivative Line [Items] | |
Notional volumes of commodity hedges (in MMBtu per day) | MMBTU | 0 |
Year 2019 [Member] | Options [Member] | NGL [Member] | |
Derivative Line [Items] | |
Notional volumes of commodity hedges (in Bbl per day) | 0 |
Year 2019 [Member] | Future [Member] | NGL [Member] | |
Derivative Line [Items] | |
Notional volumes of commodity hedges (in Bbl per day) | 0 |
Derivative Instruments and He91
Derivative Instruments and Hedging Activities, Fair Values Derivatives, Balance Sheet Location, by Derivative Contract Type (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Derivatives, Fair Value [Line Items] | ||
Derivative assets | $ 47.2 | $ 127.1 |
Derivative liabilities | 30.6 | 7.6 |
Derivative assets | 34.8 | 92.2 |
Derivative assets | 12.4 | 34.9 |
Derivative liabilities | 13 | 5.2 |
Derivative liabilities | 17.6 | 2.4 |
Current Liabilities from Risk Management Activities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 13 | 5.2 |
Long-Term Liabilities from Risk Management Activities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 17.6 | 2.4 |
Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 47.1 | 127 |
Derivative liabilities | 30.4 | 4.5 |
Designated as Hedging Instrument [Member] | Commodity Contracts [Member] | Current Assets from Risk Management Activities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 34.7 | 92.1 |
Designated as Hedging Instrument [Member] | Commodity Contracts [Member] | Long-Term Assets from Risk Management Activities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 12.4 | 34.9 |
Designated as Hedging Instrument [Member] | Commodity Contracts [Member] | Current Liabilities from Risk Management Activities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 12.8 | 2.1 |
Designated as Hedging Instrument [Member] | Commodity Contracts [Member] | Long-Term Liabilities from Risk Management Activities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 17.6 | 2.4 |
Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 0.2 | 3.1 |
Not Designated as Hedging Instrument [Member] | Commodity Contracts [Member] | Current Assets from Risk Management Activities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 0.1 | 0.1 |
Not Designated as Hedging Instrument [Member] | Commodity Contracts [Member] | Long-Term Assets from Risk Management Activities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 0.1 | 0.1 |
Not Designated as Hedging Instrument [Member] | Commodity Contracts [Member] | Current Liabilities from Risk Management Activities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | $ 0.2 | $ 3.1 |
Derivative Instruments and He92
Derivative Instruments and Hedging Activities - Pro Forma Impact Of Offsetting Assets (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Derivative Asset [Abstract] | ||
Derivative assets | $ 47.2 | $ 127.1 |
Pro forma net presentation, asset | 16.6 | |
Pro forma net presentation, asset, total | 22.7 | 119.5 |
Counterparties with Offsetting Position [Member] | ||
Derivative Asset [Abstract] | ||
Gross asset | 46.5 | 121.1 |
Gross liability | 26.7 | 7.6 |
Pro forma net presentation, asset | 22 | 113.5 |
Counterparties without Offsetting Position [Member] | ||
Derivative Asset [Abstract] | ||
Gross asset | 0.7 | 6 |
Pro forma net presentation, asset, total | 0.7 | 6 |
Current Assets from Risk Management Activities [Member] | ||
Derivative Asset [Abstract] | ||
Gross asset | 34.8 | 92.2 |
Pro forma net presentation, asset, current | 22.7 | 87 |
Current Assets from Risk Management Activities [Member] | Counterparties with Offsetting Position [Member] | ||
Derivative Asset [Abstract] | ||
Gross asset | 34.1 | 86.9 |
Gross liability | 12.1 | 5.2 |
Pro forma net presentation, asset | 22 | 81.7 |
Current Assets from Risk Management Activities [Member] | Counterparties without Offsetting Position [Member] | ||
Derivative Asset [Abstract] | ||
Gross asset | 0.7 | 5.3 |
Pro forma net presentation, asset, current | 0.7 | 5.3 |
Long-Term Assets from Risk Management Activities [Member] | ||
Derivative Asset [Abstract] | ||
Gross asset | 12.4 | 34.9 |
Pro forma net presentation, asset, noncurrent | 32.5 | |
Long-Term Assets from Risk Management Activities [Member] | Counterparties with Offsetting Position [Member] | ||
Derivative Asset [Abstract] | ||
Gross asset | 12.4 | 34.2 |
Gross liability | $ 14.6 | 2.4 |
Pro forma net presentation, asset | 31.8 | |
Long-Term Assets from Risk Management Activities [Member] | Counterparties without Offsetting Position [Member] | ||
Derivative Asset [Abstract] | ||
Gross asset | 0.7 | |
Pro forma net presentation, asset, noncurrent | $ 0.7 |
Derivative Instruments and He93
Derivative Instruments and Hedging Activities - Pro Forma Impact Of Offsetting Liabilities (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Derivative Liability [Abstract] | ||
Gross liability | $ 30.6 | $ 7.6 |
Pro forma net presentation, liability, total | 6.1 | |
Counterparties without Offsetting Position [Member] | ||
Derivative Liability [Abstract] | ||
Gross liability | 3.9 | |
Pro forma net presentation, liability, total | 3.9 | |
Current Liabilities from Risk Management Activities [Member] | ||
Derivative Liability [Abstract] | ||
Gross liability | 13 | 5.2 |
Pro forma net presentation, liability, current | 0.9 | |
Current Liabilities from Risk Management Activities [Member] | Counterparties without Offsetting Position [Member] | ||
Derivative Liability [Abstract] | ||
Gross liability | 0.9 | |
Pro forma net presentation, liability, current | 0.9 | |
Long-Term Liabilities from Risk Management Activities [Member] | ||
Derivative Liability [Abstract] | ||
Gross liability | 17.6 | $ 2.4 |
Pro forma net presentation, liability, noncurrent | 5.2 | |
Long-Term Liabilities from Risk Management Activities [Member] | Counterparties without Offsetting Position [Member] | ||
Derivative Liability [Abstract] | ||
Gross liability | 3 | |
Pro forma net presentation, liability, noncurrent | $ 3 |
Derivative Instruments and He94
Derivative Instruments and Hedging Activities - Amounts Included in OCI, Income and AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | ||
Revenues [Member] | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Gain (loss) reclassified from OCI into income (effective portion) | $ 8.1 | $ 24.5 | $ 50.6 | $ 59.3 | ||
Commodity Contracts [Member] | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Deferred gains (losses) included in accumulated OCI, before tax | [1] | 9.2 | 9.2 | $ 86.7 | ||
Commodity Contracts [Member] | Revenues [Member] | Not Designated as Hedging Instrument [Member] | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Gain (loss) recognized in income on derivatives | (0.3) | (4) | 1.3 | (0.9) | ||
Cash Flow Hedging [Member] | Commodity Contracts [Member] | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Gain (loss) recognized in OCI on derivatives (effective portion) | $ 12.9 | $ 50.7 | $ (40.5) | $ 77.6 | ||
[1] | Includes deferred net gains of $3.2 million as of September 30, 2016 related to contracts that will be settled and reclassified to revenue over the next 12 months. |
Derivative Instruments and He95
Derivative Instruments and Hedging Activities - Amounts Included in OCI, Income and AOCI (Parenthetical) (Details) $ in Millions | Sep. 30, 2016USD ($) |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Net losses on commodity hedges recorded in OCI that are expected to be reclassified to revenue within twelve months | $ 3.2 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2016USD ($)Swap | |
Fair Value Measurements [Abstract] | |
Derivative financial instruments, fair value, net | $ 16,600,000 |
Derivative fair value of net liability if commodity price increases by 10 percent | 27,700,000 |
Derivative fair value of net asset if commodity price decreases by 10 percent | $ 61,400,000 |
Number of natural gas basis swaps categorized as Level 3 | Swap | 21 |
Commodity Derivative Contracts Asset/(Liability) [Member] | |
Fair Value Measurements [Abstract] | |
Transfers out of Level 3 | $ 0 |
Fair Value Measurements - Break
Fair Value Measurements - Breakdown by Fair Value Hierarchy Category for Financial Instruments (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 | |
Financial Instruments Recorded on Our Consolidated Balance Sheets at Fair Value [Abstract] | |||
Assets from commodity derivative contracts | $ 22.7 | $ 119.5 | |
Liabilities from commodity derivative contracts | 6.1 | ||
Carrying Value [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Fair Value [Abstract] | |||
Assets from commodity derivative contracts | [1] | 46.3 | 127.1 |
Liabilities from commodity derivative contracts | [1] | 29.7 | 7.6 |
TPL contingent consideration | [2] | 2.7 | 3 |
Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value [Abstract] | |||
Cash and cash equivalents | 141.1 | 140.2 | |
Carrying Value [Member] | TRC Revolver [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value [Abstract] | |||
Long-term debt | 275 | 440 | |
Carrying Value [Member] | Senior Secured Term Loan [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value [Abstract] | |||
Long-term debt | 157.7 | 157.5 | |
Carrying Value [Member] | TRP Revolver [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value [Abstract] | |||
Long-term debt | 0 | 280 | |
Carrying Value [Member] | Partnership's Accounts Receivable Securitization Facility [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value [Abstract] | |||
Long-term debt | 225 | 219.3 | |
Carrying Value [Member] | Senior Unsecured Notes [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value [Abstract] | |||
Long-term debt | 4,326.5 | 4,884 | |
Fair Value [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Fair Value [Abstract] | |||
Assets from commodity derivative contracts | [1] | 46.3 | 127.1 |
Liabilities from commodity derivative contracts | [1] | 29.7 | 7.6 |
TPL contingent consideration | [2] | 2.7 | 3 |
Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value [Abstract] | |||
Cash and cash equivalents | 141.1 | 140.2 | |
Fair Value [Member] | Level 1 [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Fair Value [Abstract] | |||
Assets from commodity derivative contracts | [1] | 0 | 0 |
Liabilities from commodity derivative contracts | [1] | 0 | 0 |
TPL contingent consideration | [2] | 0 | 0 |
Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value [Abstract] | |||
Cash and cash equivalents | 0 | 0 | |
Fair Value [Member] | Level 2 [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Fair Value [Abstract] | |||
Assets from commodity derivative contracts | [1] | 44 | 123.1 |
Liabilities from commodity derivative contracts | [1] | 27.3 | 7.3 |
TPL contingent consideration | [2] | 0 | 0 |
Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value [Abstract] | |||
Cash and cash equivalents | 0 | 0 | |
Fair Value [Member] | Level 3 [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Fair Value [Abstract] | |||
Assets from commodity derivative contracts | [1] | 2.3 | 4 |
Liabilities from commodity derivative contracts | [1] | 2.4 | 0.3 |
TPL contingent consideration | [2] | 2.7 | 3 |
Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value [Abstract] | |||
Cash and cash equivalents | 0 | 0 | |
Fair Value [Member] | TRC Revolver [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value [Abstract] | |||
Long-term debt | 275 | 440 | |
Fair Value [Member] | TRC Revolver [Member] | Level 1 [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value [Abstract] | |||
Long-term debt | 0 | 0 | |
Fair Value [Member] | TRC Revolver [Member] | Level 2 [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value [Abstract] | |||
Long-term debt | 275 | 440 | |
Fair Value [Member] | TRC Revolver [Member] | Level 3 [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value [Abstract] | |||
Long-term debt | 0 | 0 | |
Fair Value [Member] | Senior Secured Term Loan [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value [Abstract] | |||
Long-term debt | 160.3 | 158.3 | |
Fair Value [Member] | Senior Secured Term Loan [Member] | Level 1 [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value [Abstract] | |||
Long-term debt | 0 | 0 | |
Fair Value [Member] | Senior Secured Term Loan [Member] | Level 2 [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value [Abstract] | |||
Long-term debt | 160.3 | 158.3 | |
Fair Value [Member] | Senior Secured Term Loan [Member] | Level 3 [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value [Abstract] | |||
Long-term debt | 0 | 0 | |
Fair Value [Member] | TRP Revolver [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value [Abstract] | |||
Long-term debt | 0 | 280 | |
Fair Value [Member] | TRP Revolver [Member] | Level 1 [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value [Abstract] | |||
Long-term debt | 0 | 0 | |
Fair Value [Member] | TRP Revolver [Member] | Level 2 [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value [Abstract] | |||
Long-term debt | 0 | 280 | |
Fair Value [Member] | TRP Revolver [Member] | Level 3 [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value [Abstract] | |||
Long-term debt | 0 | 0 | |
Fair Value [Member] | Partnership's Accounts Receivable Securitization Facility [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value [Abstract] | |||
Long-term debt | 225 | 219.3 | |
Fair Value [Member] | Partnership's Accounts Receivable Securitization Facility [Member] | Level 1 [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value [Abstract] | |||
Long-term debt | 0 | 0 | |
Fair Value [Member] | Partnership's Accounts Receivable Securitization Facility [Member] | Level 2 [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value [Abstract] | |||
Long-term debt | 225 | 219.3 | |
Fair Value [Member] | Partnership's Accounts Receivable Securitization Facility [Member] | Level 3 [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value [Abstract] | |||
Long-term debt | 0 | 0 | |
Fair Value [Member] | Senior Unsecured Notes [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value [Abstract] | |||
Long-term debt | 4,447.8 | 4,192 | |
Fair Value [Member] | Senior Unsecured Notes [Member] | Level 1 [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value [Abstract] | |||
Long-term debt | 0 | 0 | |
Fair Value [Member] | Senior Unsecured Notes [Member] | Level 2 [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value [Abstract] | |||
Long-term debt | 4,447.8 | 4,192 | |
Fair Value [Member] | Senior Unsecured Notes [Member] | Level 3 [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value [Abstract] | |||
Long-term debt | $ 0 | $ 0 | |
[1] | The fair value of derivative contracts in this table is presented on a different basis than the Consolidated Balance Sheets presentation as disclosed in Note 15 – Derivative Instruments and Hedging Activities. The above fair values reflect the total value of each derivative contract taken as a whole, whereas the Consolidated Balance Sheets presentation is based on the individual maturity dates of estimated future settlements. As such, an individual contract could have both an asset and liability position when segregated into its current and long-term portions for Consolidated Balance Sheets classification purposes. | ||
[2] | See Note 4 – Business Acquisitions. |
Fair Value Measurements - Chang
Fair Value Measurements - Changes in Fair Value of Financial Instruments Classified as Level 3 (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2016USD ($) | |
Contingent Liability [Member] | |
Changes in fair value of financial instruments classified as Level 3 in the fair value hierarchy [Roll Forward] | |
Balance, beginning of period | $ (3) |
Change in fair value of TPL contingent consideration | 0.3 |
New Level 3 instruments | 0 |
Settlements included in Revenue | 0 |
Unrealized gain/(loss) included in OCI | 0 |
Balance, end of period | (2.7) |
Commodity Derivative Contracts Asset/(Liability) [Member] | |
Changes in fair value of financial instruments classified as Level 3 in fair value hierarchy [Roll Forward] | |
Balance, beginning of period | 3.7 |
Change in fair value of TPL contingent consideration | 0 |
New Level 3 instruments | 1 |
Settlements included in Revenue | (1) |
Unrealized gain/(loss) included in OCI | (3.8) |
Balance, end of period | $ (0.1) |
Contingencies - Additional Info
Contingencies - Additional Information (Details) | Dec. 16, 2015Plaintiff | Jun. 18, 2015USD ($) | Oct. 31, 2016 | Sep. 30, 2016 |
Loss Contingencies [Line Items] | ||||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Percentage | 63.00% | |||
Subsequent Event [Member] | ||||
Loss Contingencies [Line Items] | ||||
Business Acquisition, Percentage of Voting Interest Acquired | 37.00% | |||
State Court Lawsuit [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of plaintiffs | Plaintiff | 2 | |||
Environment Proceeding [Member] | Minimum [Member] | ||||
Loss Contingencies [Line Items] | ||||
Litigation settlement amount | $ 100,000 | |||
Environment Proceeding [Member] | Maximum [Member] | ||||
Loss Contingencies [Line Items] | ||||
Litigation settlement amount | $ 300,000 |
Supplemental Cash Flow Infor100
Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | Feb. 27, 2015 | [2] | Sep. 30, 2016 | Sep. 30, 2016 | Sep. 30, 2015 | |
Cash: | ||||||
Interest paid, net of capitalized interest | [1] | $ 211.2 | $ 163.4 | |||
Income taxes paid, net of refunds | 1.2 | 13.3 | ||||
Non-cash investing activities [Abstract] | ||||||
Deadstock commodity inventory transferred to property, plant and equipment | 16.9 | 1.2 | ||||
Impact of capital expenditure accruals on property, plant and equipment | (0.4) | (57.2) | ||||
Transfers from materials and supplies inventory to property, plant and equipment | 1.9 | 2.9 | ||||
Change in cash flow estimate | (9.1) | 3.8 | ||||
Non-cash financing activities [Abstract] | ||||||
Reduction of Owner's Equity related to accrued dividends on unvested equity awards under share compensation arrangements | $ 6.8 | 6.8 | 0.3 | |||
Debt additions and retirements related to exchange of TRP 6⅝% Notes for APL 6⅝% Notes | 342.1 | |||||
Allocation of Series A Preferred Stock net book value of BCF to additional paid-in capital | 614.4 | |||||
Accrued dividends of Series A Preferred Stock | 22.9 | 22.9 | ||||
Accrued deemed dividends of Series A Preferred Stock | 5.8 | 12.3 | ||||
Transfer within additional paid-in capital for exercise of Warrants | 53.2 | |||||
Non-cash balance sheet movements related to the TRC/TRP Merger (see Note 2 - Basis of Presentation): | ||||||
Prepaid transaction costs reclassified in additional paid-in capital | 4.5 | |||||
Issuance of common stock | 0.1 | |||||
Additional paid-in capital | 3,120 | 3,120 | ||||
Accumulated other comprehensive income | 55.7 | 55.7 | ||||
Noncontrolling interests | (4,119.7) | |||||
Deferred tax liability | $ 943.9 | $ 943.9 | ||||
Non-cash balance sheet movements related to the Atlas Merger: (see Note 4 - Business Acquisitions) [Abstract] | ||||||
Non-cash merger consideration - common units and replacement equity awards | 2,436.1 | |||||
Non-cash merger consideration - common shares and replacement equity awards | 1,013.7 | |||||
Net non-cash balance sheet movements excluded from consolidated statements of cash flows | 3,449.8 | |||||
Net cash merger consideration included in investing activities | $ 745.7 | 1,574.4 | ||||
Total fair value of consideration transferred | $ 5,024.2 | |||||
[1] | Interest capitalized on major projects was $7.2 million and $9.1 million for the nine months ended September 30, 2016 and 2015. | |||||
[2] | Net of cash acquired of $40.8 million. |
Supplemental Cash Flow Infor101
Supplemental Cash Flow Information (Parenthetical) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Debt Instrument [Line Items] | ||
Interest capitalized on major projects | $ 7.2 | $ 9.1 |
Targa Resources Partners LP [Member] | Senior Unsecured 6 5/8% Notes due October 2020 [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate on fixed rate debt | 6.625% | |
Atlas Pipeline Partners [Member] | Senior Unsecured 6 5/8% Notes due October 2020 [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate on fixed rate debt | 6.625% |
Compensation Plans - Additional
Compensation Plans - Additional Information (Details) $ in Millions | Mar. 02, 2016shares | Feb. 17, 2016USD ($) | Mar. 31, 2016USD ($) | May 26, 2016shares |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Conversion ratio in stock-for-unit transaction | 0.62 | |||
Equity-Settled Performance Units [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Compensation costs | $ | $ 3.9 | |||
Cash-Settled Performance Units [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Compensation costs | $ | $ 4.8 | |||
Targa Resources Partners LP [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Conversion ratio in stock-for-unit transaction | 0.62 | |||
Long Term Incentive Plan [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Common stock issuance for registration | 800,000 | |||
Additional common stock issuance for registration | 300,000 | |||
Long Term Incentive Plan [Member] | Unvested Restricted Stock Awards [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Granted (in shares) | 331,282 | |||
Vesting period of awards | 3 years |
Compensation Plans - Long Term
Compensation Plans - Long Term Incentive Plan (Details) - Targa Resources Partners LP [Member] | Feb. 17, 2016shares |
Phantom Unit Awards [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Outstanding shares | 349,451 |
Converted outstanding shares | 216,561 |
Partnership Long Term Incentive Plan [Member] | Equity-Settled Performance Units [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Outstanding shares | 675,745 |
Converted outstanding shares | 418,903 |
2015 Long Term Incentive Plan [Member] | Cash-Settled Performance Units [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Outstanding shares | 192,390 |
Converted outstanding shares | 119,178 |
2014 Long Term Incentive Plan [Member] | Cash-Settled Performance Units [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Outstanding shares | 119,900 |
Converted outstanding shares | 74,248 |
2013 Long Term Incentive Plan [Member] | Cash-Settled Performance Units [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Outstanding shares | 139,700 |
Converted outstanding shares | 86,538 |
Segment Information - Additiona
Segment Information - Additional Information (Details) - Segment | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | ||
Number of segments | 2 | |
Previous Reportable Segments [Member] | Gathering and Processing [Member] | ||
Segment Reporting Information [Line Items] | ||
Number of reportable segments | 2 | |
Previous Reportable Segments [Member] | Logistics and Marketing [Member] | ||
Segment Reporting Information [Line Items] | ||
Number of reportable segments | 2 |
Segment Information Revenues an
Segment Information Revenues and Operating Margin (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Revenues | ||||
Sales of commodities | $ 1,398.7 | $ 1,321.3 | $ 3,882.9 | $ 4,119.6 |
Fees from midstream services | 253.6 | 310.8 | 795.5 | 891.6 |
Revenues | 1,652.3 | 1,632.1 | 4,678.4 | 5,011.2 |
Operating margin | 286.6 | 326.1 | 885.5 | 951.6 |
Gathering and Processing [Member] | ||||
Revenues | ||||
Revenues | 869.5 | 843.4 | 2,263.8 | 2,288.8 |
Operating margin | 149.4 | 140.5 | 404.1 | 372 |
Logistics and Marketing [Member] | ||||
Revenues | ||||
Revenues | 1,431.2 | 1,075.7 | 4,010.7 | 3,636.1 |
Operating margin | 126 | 163.8 | 424.5 | 519 |
Other Segment [Member] | ||||
Revenues | ||||
Revenues | 11.2 | 21.8 | 56.9 | 60.7 |
Operating margin | 11.2 | 21.8 | 56.9 | 60.7 |
Corporate and Eliminations [Member] | ||||
Revenues | ||||
Revenues | (659.6) | (308.8) | (1,653) | (974.4) |
Operating margin | (0.1) | |||
Operating Segments [Member] | ||||
Revenues | ||||
Sales of commodities | 1,398.7 | 1,321.3 | 3,882.9 | 4,119.6 |
Fees from midstream services | 253.6 | 310.8 | 795.5 | 891.6 |
Revenues | 1,652.3 | 1,632.1 | 4,678.4 | 5,011.2 |
Operating Segments [Member] | Gathering and Processing [Member] | ||||
Revenues | ||||
Sales of commodities | 172.2 | 470.3 | 441.3 | 1,177.5 |
Fees from midstream services | 120.6 | 117.3 | 360.9 | 302.9 |
Revenues | 292.8 | 587.6 | 802.2 | 1,480.4 |
Operating Segments [Member] | Logistics and Marketing [Member] | ||||
Revenues | ||||
Sales of commodities | 1,215.3 | 829.2 | 3,384.7 | 2,881.4 |
Fees from midstream services | 133 | 193.5 | 434.6 | 588.7 |
Revenues | 1,348.3 | 1,022.7 | 3,819.3 | 3,470.1 |
Operating Segments [Member] | Other Segment [Member] | ||||
Revenues | ||||
Sales of commodities | 11.2 | 21.8 | 56.9 | 60.7 |
Revenues | 11.2 | 21.8 | 56.9 | 60.7 |
Intersegment Eliminations [Member] | Gathering and Processing [Member] | ||||
Revenues | ||||
Sales of commodities | 574.8 | 253.4 | 1,455.8 | 802.1 |
Fees from midstream services | 1.9 | 2.4 | 5.8 | 6.3 |
Revenues | 576.7 | 255.8 | 1,461.6 | 808.4 |
Intersegment Eliminations [Member] | Logistics and Marketing [Member] | ||||
Revenues | ||||
Sales of commodities | 76.3 | 48.9 | 176.3 | 152.3 |
Fees from midstream services | 6.6 | 4.1 | 15.1 | 13.7 |
Revenues | 82.9 | 53 | 191.4 | 166 |
Intersegment Eliminations [Member] | Corporate and Eliminations [Member] | ||||
Revenues | ||||
Sales of commodities | (651.1) | (302.3) | (1,632.1) | (954.4) |
Fees from midstream services | (8.5) | (6.5) | (20.9) | (20) |
Revenues | $ (659.6) | $ (308.8) | $ (1,653) | $ (974.4) |
Segment Information, Other Fina
Segment Information, Other Financial Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||||||||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Mar. 31, 2016 | Dec. 31, 2015 | Feb. 27, 2015 | Dec. 31, 2014 | ||||||
Other financial information [Abstract] | |||||||||||||
Total assets | $ 13,055.6 | [1] | $ 13,373.4 | [1] | $ 13,055.6 | [1] | $ 13,373.4 | [1] | $ 13,211 | ||||
Goodwill, net | 393 | 551.4 | 393 | 551.4 | $ 393 | $ 417 | $ 707 | $ 0 | |||||
Capital expenditures | 134.6 | 186.2 | 426.5 | 571 | |||||||||
Total fair value of consideration transferred | 5,024.2 | 5,024.2 | $ 5,024.2 | ||||||||||
Operating Segments [Member] | Gathering and Processing [Member] | |||||||||||||
Other financial information [Abstract] | |||||||||||||
Total assets | [1] | 10,047.3 | 10,649.5 | 10,047.3 | 10,649.5 | ||||||||
Goodwill, net | 393 | 551.4 | 393 | 551.4 | |||||||||
Capital expenditures | 97.1 | 115.1 | 271.3 | 356.6 | |||||||||
Total fair value of consideration transferred | 5,024.2 | 5,024.2 | |||||||||||
Operating Segments [Member] | Logistics and Marketing [Member] | |||||||||||||
Other financial information [Abstract] | |||||||||||||
Total assets | [1] | 2,737.5 | 2,447.3 | 2,737.5 | 2,447.3 | ||||||||
Capital expenditures | 36.2 | 68.4 | 151.9 | 209.4 | |||||||||
Operating Segments [Member] | Other Segment [Member] | |||||||||||||
Other financial information [Abstract] | |||||||||||||
Total assets | [1] | 47.2 | 137.6 | 47.2 | 137.6 | ||||||||
Operating Segments [Member] | Corporate and Other | |||||||||||||
Other financial information [Abstract] | |||||||||||||
Total assets | [1] | 223.6 | 139 | 223.6 | 139 | ||||||||
Capital expenditures | $ 1.3 | $ 2.7 | $ 3.3 | $ 5 | |||||||||
[1] | Corporate assets at the segment level primarily include tax-related assets, cash and prepaids. |
Segment Information - Summary o
Segment Information - Summary of Consolidated Revenues by Product and Service (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Revenue from External Customer [Line Items] | ||||
Sales of commodities | $ 1,398.7 | $ 1,321.3 | $ 3,882.9 | $ 4,119.6 |
Fees from midstream services | 253.6 | 310.8 | 795.5 | 891.6 |
Total revenues | 1,652.3 | 1,632.1 | 4,678.4 | 5,011.2 |
Natural Gas Sales [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Sales of commodities | 465.6 | 456.1 | 1,102 | 1,201.6 |
NGL Sales [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Sales of commodities | 866.7 | 772.2 | 2,575.8 | 2,656.9 |
Condensate Sales [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Sales of commodities | 35 | 40.4 | 96.2 | 113.1 |
Petroleum Products [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Sales of commodities | 20.2 | 30.8 | 52 | 87.3 |
Derivative Activities [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Sales of commodities | 11.2 | 21.8 | 56.9 | 60.7 |
Fractionating and Treating Fees [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Fees from midstream services | 33.2 | 55.7 | 94.8 | 160.1 |
Storage, Terminaling, Transportation and Export Fees [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Fees from midstream services | 89.7 | 126.8 | 316.3 | 384.6 |
Gathering and Processing Fees [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Fees from midstream services | 110.9 | 106.6 | 329.9 | 280.7 |
Other [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Fees from midstream services | $ 19.8 | $ 21.7 | $ 54.5 | $ 66.2 |
Segment Information - Reconcili
Segment Information - Reconciliation of Operating Margin to Net Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Reconciliation of operating margin to net income (loss): | |||||||
Operating margin | $ 286.6 | $ 326.1 | $ 885.5 | $ 951.6 | |||
Depreciation and amortization expenses | (184) | (165.8) | (563.6) | (448.3) | |||
General and administrative expenses | (46.1) | (44.9) | (138.3) | (136.5) | |||
Goodwill impairment | 0 | $ (24) | $ (290) | 0 | (24) | 0 | $ (290) |
Interest expense, net | (62.7) | (67.8) | (187) | (189.5) | |||
Other, net | (5.7) | (2.8) | 5.1 | (42.6) | |||
Income tax (expense) benefit | 8.7 | (24) | 3.9 | (54.1) | |||
Net income (loss) | $ (3.2) | $ 20.8 | $ (18.4) | $ 80.6 |